The crypto king Bitcoin has slumped nearly half its mid-April high of over $ 64,000. Amid temporary spurts, the digital currency has yet to rebound and hold above the $ 34,000 mark it has been trading at since May last week. Its share of the total crypto market capitalization has also fallen from almost 70 percent in January this year to currently 44 percent, as data from CoinMarketCap showed. According to a JPMorgan cryptocurrency expert, the bitcoin bear market is likely to continue to advance until its market share bounces back to more than 50 percent.
“A healthy number there, based on Bitcoin’s share as a percentage of total cryptocurrency market capitalization, is 50% or more. I think that’s another indicator to watch here as to whether or not this bear phase is over, ”JPMorgan analyst Nikolaos Panigirtzoglou told CNBC. Bitcoin’s relatively low market share is a negative signal that indicates relatively subdued interest in the digital currency, he added.
In contrast, there are experts who believe that Bitcoin could reach US $ 100,000 by the end of this year “despite very rough phases”. Thomas Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, told CNBC last month that “Bitcoin is now in a very difficult phase. I think the technical picture in the current name doesn’t look good. ”The decline is largely attributed to the crackdown on crypto usage and mining in China, along with tweets from Elon Musk, even if the digital currency is subject to increased regulatory scrutiny exposed to US lawmakers.
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“The correction had been planned for a long time and only related to China’s crypto ban. The correction was expected in the last few months as money was already being withdrawn from Bitcoin as prices soared. Historically, we see Bitcoin going down first, followed by an upturn in other coins such as Ethereum and Binance coins, etc. The market at this point was looking for some negative news that could act as a trigger. The China ban seems to be the trigger here, ”Edul Patel, CEO and co-founder of Mudrex, told Financial Express Online.
The suggestions / recommendations on cryptocurrencies in this story come from their respective commentators. Financial Express Online assumes no responsibility for their advice. Please consult your financial advisor before trading / investing in cryptocurrencies.
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