CoinsPaid Media interviewed crypto analysts and experts, collecting their opinions and forecasts about current events, which will determine the situation in the cryptocurrency market in early July.
Crypto Market Revival Is Not Worth Waiting for Now
According to Ivan Nesin, Senior Analyst at Forex Club Group, the crypto market will remain unstable. Even though Bitcoin is trying to gain a foothold above $20,000, BTC isn’t able to recover due to high pressure from the U.S. Federal Reserve. The Fed’s key interest rate hike is weighing not only on cryptocurrencies but also on the traditional asset market.
“Due to politics and economic sanctions, the global inflation situation is unlikely to change for the better, so the Fed’s policy is also likely to remain tight. We can expect Bitcoin to temporarily drop below $20,000 in early July, after which a smooth return to levels of $22,000-25,000 can be expected in August. Other cryptocurrencies will mainly replicate the dynamics of Bitcoin’s price, so it’s not worth waiting for the revival of the crypto market just yet,” Ivan commented.
While the Market Panics, Big Investors Are Buying Assets
Kirill Sagitov, the founder of Alpac Wallet, compares the recent fall of BTC to what happened in May 2021, when its value fell twofold. Due to the crisis in the crypto market, some investors are panic selling.
“However, this is nothing new. In the more advanced cryptocurrency community, everybody’s calm. Top investors are buying up every asset they can get their hands on. One of the biggest private Bitcoin holders bought 1,000 BTC, and now has 128,000 BTC. Other companies and investors are doing the same.
At this time, there are thousands of leveraged long positions open on exchanges against hundreds of shorts. I think that if Bitcoin does fall below $20,000, we may see it drop to $15,000 in the first half of July. However, if that doesn’t happen, the asset will return to the $40,000-45,000 point by September,” Kirill shares.
“I Don’t See Any Waterfalls of Money”
Business consultant, Alexander Visotsky, believes that forecasts in the crypto field are difficult because it’s not easy to determine how exactly economic processes affect the crypto market.
Alexander says that direct financial support for citizens in the U.S. in 2020-2021 was the result of an excess of free money that people invested in cryptocurrencies. “I don’t see any waterfalls of money in the coming months. When dealing with a volatile asset like cryptocurrency, you need to clearly understand the signals leading to growth or decline,” summarizes the expert.