In May, crypto market participants and many members of the TradFi industry were waiting for a resolution to the story with another increase in the U.S. government debt ceiling and observing the problems in the local banking system. The next hike in the interest rate took place, but against this background, the cryptocurrency market remained mostly in a sideways movement, with no big ups and downs. What can we expect in June? CP Media asked this question to specialists whose opinions are presented in this material.
Note: The information appearing here is for informational purposes only and does not contain investment advice or recommendations. All financial management decisions should be made based on your own analysis and consultations with professionals.
Forecasts for June Seem Generally Restrained
“The well-known stock market saying ‘sell in May and go away’ has been working for years in the cryptocurrency market. But this time, we witnessed serious institutional problems in the American economy. The main stock indexes are falling against this very background, and the crypto market is following them,” reports Sergei Khitrov, Founder and Head of Listing.Help.
According to the forecasts of Listing.Help analysts, strong growth in the market is unlikely to be expected in June. If the uncertainty in the economy continues, BTC may face a prolonged period of sideways price movement in the range of $26,000 to $31,000 until the macroeconomic issues are resolved. Moreover, the summer season for the crypto market is traditionally marked by the lowest trading volumes of the year. This, in turn, isn’t conducive to market growth either.
“By early June, the cryptocurrency market comes in a state of caution and distrust. This is due to the abundance of fake news that spreads in the media time and again. For instance, the news that BTC confiscated in the U.S. will be sold turned out to be fake. Although it was refuted twice, it negatively impacted BTC’s exchange rate. A rise in transaction fees also played a role in the decline in demand for BTC. However, even despite default threats in the United States, no panic was observed in the market,” Alexander Visotsky, Founder of business management platform Tonnus, shares his opinion.
“We should expect an increase in the value of time-tested assets. BTC once again approached the $30,000 mark in May. It’s possible that the first cryptocurrency will manage to overcome the critical level in June. If it happens, the digital gold may go up to $35,000-36,000, but then it may go down to $30,000-32,000 due to correction. ETH may break through the $2,000 barrier amid the growth. Though Ethereum and Bitcoin began to move less synchronously, ETH depends on the general market sentiment built around Bitcoin. In case of a $2,000 breakthrough, the price may rise to $2,400-2,500,” predicts Vlad Krylov, Chief Editor of Crypto.ru.
“The boom in meme tokens points to the willingness of the community and big investors to invest in high-risk assets. This is a good time for those pursuing high profits and investing small amounts of money. But one shouldn’t count on long-term profits. If a user managed to increase their capital by three to five times thanks to a meme token, it’s better to fix the profit and close the deal,” Vlad summarizes.
“June is usually a quiet month for BTC and the whole market. Is it going to be that way this year, or are we going to be surprised by the volatility that started after a rather quiet May?” wonders Vince Pellizzari, CoinsPaid Trader. He noted that there was a slight bounce in the current rally in May, which turned out to be quite positive for the market. Now we’re ten months away from the next halving, and we already know what to expect during such key events for the cryptocurrency market. Indeed, during the last three halvings, the price of BTC rose at least tenfold, if not more. The market seems to be set up for such a scenario to happen again. That doesn’t mean it’s the right time to enter BTC, but long-term investors have a relatively reliable pattern to follow.
“I like this pattern, and I’m looking at a couple of key levels to add some more cryptocurrencies to my portfolio. On the downside, $25,000 seems like a decent entry to play for a bounce and continuation, and on the upside, the two levels that matter are $27,800 (the first bullish signal and finally the key psychological level that the whole market is looking at) and $30,000 (after which we can expect FOMO and eventually a continuation of the bullish trend). Does it mean the road to the Moon is already paved? No, beware of many risks! Just the other day, politicians in the U.S. failed to agree on the national debt ceiling. The conflict between Ukraine and Russia continues. And there are many more of these risks, so you should watch out for them,” Vince concludes.
“Increased turbulence in the financial markets can’t be ruled out in June. The Fed may take a pause in a prolonged series of key rate hikes, which could affect the devaluation of the national currency and lead to the strengthening of high-risk assets, including crypto,” says Dmitry Militsin, PR Manager of cryptocurrency exchange StormGain.
Dmitry also draws attention to the legal debate between the SEC and Ripple. The decision date remains open, with many counting on the company’s success and the growth of XRP. In the most recent round, Ripple won a small victory as the court agreed with the defendant’s arguments and urged the regulator to publish a speech from former Director William Hinman in which he refused to recognize XRP as a security. Ripple’s victory could significantly change the position of cryptocurrencies in the U.S. market.
