Skip to content Skip to sidebar Skip to footer

The Bitcoin rate increased by $1 thousand in one day. What will happen next?

Bitcoin has been following the market lately. It was influenced by various factors, but in general the situation now is that the world economy is not growing. And since cryptocurrency is a speculative asset, its main value lies in protecting investments. But in conditions of stagnation, Bitcoin does not even represent a normal defensive asset. Plus, most players in the crypto market are private investors. And they very carefully monitor the movements of major players and easily change course. However, I believe that in September the market may side with buyers. The Bitcoin rate has increased by $1 thousand over the past 24 hours. The first cryptocurrency increased in price from $25 thousand to more than $26 thousand, recouping its fall on September 11. At 17:00 Hong Kong time, the asset is trading around $26.2 thousand. Our expert and CFO Konstantinas Sizovas analyzed the price movements of Bitcoin and gave a forecast for its dynamics in the near future.

There is nothing fundamentally sound about the current movements of Bitcoin in recent days. The asset, against the background of low liquidity and falling capitalization, is simply transferred from hand to hand, from one group of players to another, thereby forming a range that opened at the end of March. Its lower limit at $25 thousand has more than once acted as significant support: a price going lower will be unpleasant for many players, in particular miners, so it is clearly seen that this level is being “protected.”

Since it was expected that there would be no strong price changes in September, and I continue to believe that we will see continued range movements within the area of $24 thousand – $31 thousand. It will be possible to talk about more or less significant and conscious movements only in the 4th quarter. Investors are closely awaiting signals from the Fed, both at the late September meeting and at the November FOMC meeting, and these events could add volatility to the market. At the moment, volatility in the market is purely formal, and is within the framework of capitulations. That is, analysts’ forecasts came true, and the closing of the first half of the year was right around $30 thousand, and since halving is expected in the spring of 2024, as it approaches this milestone, Bitcoin will become more expensive. And after it, other cryptocurrencies. In addition, since the investment bank JPMorgan lowered the estimate of the cost of mining one bitcoin to $18 thousand, then in the near future, in my opinion, the forecast for the leading cryptocurrency is rather positive.

Leave a comment