On Tuesday night, the value of the first cryptocurrency collapsed to a mid-March low of $39,900. The fall of digital gold below $40,000 occurred against the backdrop of a spectacular decline in global stock indices. The value of the BTC continues to decrease during the day, at one point, the coin is trading at $39,732.
The leading altcoins do not lag behind the king of cryptocurrencies and also demonstrate a permanent drop: over the past 24 hours, the price of Ethereum has sunk by 8.9%, Binance Coin has lost 6.7%, and Terra - 13%.
According to the world's largest aggregator of data on virtual assets CoinGecko, over the past day, the total capitalization of the crypto market decreased by 7.9% to $ 1.94 trillion.
According to the results of the first quarter of 2022, the value of digital gold lost 1.5%. At the same time, the past March was a fairly favorable period for bitcoin, as a result of which it reported an increase of 10%, strengthening for the second consecutive month.
Recall that in January, the BTC lost more than 16%, and its price increased by 12% in February.
In November 2021, digital gold updated the historical record, soaring above $69,000. Since then, the cryptocurrency has moved to a steady decline and has fallen in price by more than 40%.
According to the results of the past year, the cost of bitcoin increased 1.6 times – to $46,200 from $28,900.
According to the data of the analytical company CryptoQuant, over the past few days, miners have dropped some of the virtual gold amid a decline in the value of digital currencies. Full-scale bearish sentiment may prevail this week, as the exchange balance of the first cryptocurrency has started to increase again.
The unpredictable behavior of the cryptocurrency market forces experts to make the most unexpected predictions about its future. So, on the eve of the famous trader Peter Brandt predicted the return of digital gold to a bullish trend no earlier than May 2024.
As proof of his opinion, the analyst recalled that traditionally, it took about 33 months after the end of the previous one to start a new stage of confident growth of the military-industrial complex. Since the first cryptocurrency reached its historical record in November 2021, the next round of takeoff should happen in May 2024.
By the way, investors reacted to the statement of the American expert with due attention, because earlier the trader had already given an accurate forecast regarding the price of bitcoin in mid-2021.
Mike Novogratz, director of virtual asset management company Galaxy Digital, adheres to no less pessimistic scenarios regarding the future of bitcoin. He recently said that the main virtual asset will take off again only after the US Federal Reserve suspends monetary policy tightening.
If you believe the schedule of the expected trajectory of the key rate, the Fed plans to increase the cost of financing in the economy during 2022-2023. In turn, Novogratz believes that in the near future the US central bank will raise interest rates by another 50 basis points.
