According to Bloomberg, some experts see Bitcoin’s price movement over the past few days as a sign that the currency could recover.
Bitcoin price has bottomed, is there a chance to rise again?
According to Coin Desk data on June 1, the price of Bitcoin was at $36,869/dong, up more than 1% from a day earlier. Bitcoin has recorded two consecutive bullish days. In the past 24 hours, the price has at times approached the threshold of 38,000 USD/VND.
Bitcoin’s intraday price volatility also dropped to its lowest level since the start of the year. Price movement is measured by the difference between the daily high and low. Bitcoin price has reduced volatility even as US financial authorities are preparing to tighten regulation of the cryptocurrency market.
According to Bloomberg, the 10-day price volatility of Bitcoin also dropped to 106%. On May 24, this rate increased to 162%.
Despite a flurry of negative news targeting Bitcoin, the coin’s price is still up $2,000 per coin over the weekend. I can’t help but take it as a sign that Bitcoin price has bottomed out. The bad news is gone. making new lows, said Tom Lee, co-founder of research firm Fundstrat Global Advisors.
Mr. Lee predicts the price of Bitcoin will surpass 125,000 USD/dong this year. However, he is still observing the time when the price regains the mark of more than 40,000 USD/dong.
Bitcoin price plummeted after Tesla CEO Elon Musk announced that the company would stop accepting Bitcoin payments. Along with that are regulatory risks from the Chinese government.
The Chinese and Iranian authorities have banned Bitcoin mining operations because it uses too much energy. Observers predict that the US may also increase scrutiny due to the high volatility and increasing size of the cryptocurrency market.
Bank of Japan (BOJ) Governor Haruhiko Kuroda also expressed skepticism about the usefulness of the cryptocurrency industry.
“Most trading is speculative and extremely volatile. They are hardly used as a payment instrument,” Mr. Kuroda commented in an interview with Bloomberg.
On May 31, the Governor of the Central Bank of Sweden asserted that Bitcoin and other cryptocurrencies cannot evade regulatory scrutiny.
Environmental concerns with Bitcoin could make it difficult for the currency to attract large institutional investors.
However, some experts believe that the quietness of the market over the weekend is a sign that prices may recover. Since the low in May, Bitcoin’s price has climbed 18%. Investors who bought into Bitcoin from January 1, 2021, still have a profit of 26.75%.
“Regulatory involvement can bring negative news in the short term. However, they will have a positive impact in the medium term and attract more institutional investors,” said Mr. Jonathan Cheesman. at the crypto derivatives exchange, FTX said.
The price of Bitcoin may become less volatile after governments impose regulations aimed at curbing practices such as fraud and speculation. “The other good news is that the worst fears did not materialize,” he added.
Bitcoin’s biggest price drop in a decade but the author of “Rich Dad, Poor Dad” says it’s a great thing
In an interview in April, Kiyosaki once said that the price of Bitcoin will surpass the $ 1 million mark in the next 5 years.
Bitcoin price is heading for its worst month since 2011, yet one prominent investor called it an absolutely “great news.”
“Bitcoin is collapsing. This is great news. When the price hits $ 27,000, I can start shopping again. Much will depend on the global macro environment. Remember that the problem is not gold, silver, or bitcoin. The problem is the incompetence in government, the Fed, and Wall Street. Remember that gold cost 300 dollars in 2000,” Robert Kiyosaki, author of the famous book “Rich Dad, Poor Dad” exclaims on Twitter and thinks that now is a good opportunity to buy.
In an interview in April, Kiyosaki once said that the price of Bitcoin will surpass the $ 1 million mark in the next 5 years. However, he said that as an investment asset, he still prefers gold and silver. He called gold and silver “God’s money.”
Gold futures are currently above $1,900, up 8% in May. Silver prices are above $28, also up about 8% in the month.
Kiyosaki has long been one of the most vocal critics of the Fed, the Treasury Department, and the Biden administration. He called them “losers” and socialists. He also predicts the dollar will die.
Last weekend the crypto market avoided the “bloodbath holiday” scenario that some predicted. Despite dropping about 5% on Saturday, by Sunday the price had recovered. The Ethereum, Dogecoin coins also have similar developments.
However, Bitcoin price still fell more than 37% in May, marking the worst month since September 2011. In October of that year, the Bitcoin price bottomed out at just $2.
Since peaking at nearly $65,000 in mid-April, the Bitcoin price has dropped about 45%. However, since the beginning of the year, the coin is still up 24% and up about 270% in the past 1 year.