The cost of the first crypto currency grew during the last few hours and reached the mark of $7,730, but then started to decline again. According to experts, in the near future, prices should not be expected to wait
On Thursday, May 24, the average market price of bitcoin again dropped to $7,600. Crypto currency valued over the past few hours, but after it rose to $7,735, it began to become cheaper again. Just last night the coin was trading at $7,900, the value fell by more than $400 for a short period of time, at night it was $7,400.
Analyst Fundstrat Tom Lee in an interview with CNBC said that this decline is due to the typical volatility of digital money. He claims that by the end of the year the price of the coin will reach $25,000.
Specialist noted that the cost of production of the first crypto currency is $6 000, which is lower than the price of bitcoin on the market. Li believes that institutional investors will soon come to the market, this will positively affect the course of the coin.
“I believe that institutional investors are very interested in this market, but they have not yet entered into the crypto-currencies because of regulatory uncertainties. But their access to crypto-currencies as a class of assets will eventually become a powerful factor for the growth of bitcoin, “he said.
The founder of Fundstrat added that historically the main increase in the price of bitcoin occurs in just ten days. Therefore, investors need to keep the crypto currency, as its rate will increase dramatically to $25,000.
“Historically, all the results of the bitcoin price for a single year are for 10 days. If we exclude these 10 days, we will find that each year bitcoin drops by 25%. No matter how sad it would be to hold bitcoin for $8,000, a jerk from $8,000 to $25,000 will happen in a few days, “Lee said.
In turn, the analyst of the GC Forex Club Ivan Marchena sure yesterday’s drop in the cost of bitcoin was quite predictable. The market is under pressure due to the fight against crypto-currency start-ups, which in early May launched financial regulators from the US and Canada.
“One of the news that adversely affects the market is the message that the financial regulators of the US and Canada are fighting the crypto-currency start-ups under Operation Cryptosweep. Negative attitude on the part of regulators frankly frightens investors who seek to fix risks by exiting from crypto-currency assets. Of the relatively positive news, we can note the news from the Russian Federation that the State Duma adopted in the first reading a draft law on the digital economy that introduces the concept of “digital money”, which is not recognized as a legal means of payment. Against this background, we expect that the decline in the Crypto-currency may continue in the near future, “the expert believes.
The chairman of the supervisory board of JSC “Bank Voronezh” Murad Salikhov agreed with the analyst of the GC Forex Club. He believes that the situation that is developing in the market was quite predictable.
“In the market, now you can observe the downward movement and the falling falls into this movement. Significant news for critical currency in the market is almost gone, and what is observed is characteristic of digital assets. I believe that in the near future such dynamics will continue, “Salikhov said.
The owner of the Sauber Bank and the head of eCoinomic Alexei Smolyanov believes that several factors influenced the market correction.
“This correction was preceded by two factors. First – following the Japanese exchange Coincheck, the decision to delinquent anonymous coins was taken by the leadership of the Korean stock exchange Korbit. This is due to the tightening of legislation and the desire to protect themselves from “dirty” operations. The second factor that influenced the mood on the market: the recognition of Alexander Vinnik Russian justice in that he laundered money through the BTC-E exchange. The reason he wants to be tried in Russia is a relatively easy punishment for this type of crime. All these factors influence the opinions of inexperienced traders, which are still very much on the crypto-currency market, “the expert said.
Despite the prediction of Tom Lee, most experts agree that in the near future the cost of bitcoin will continue to fall.