Bitcoin May Fall Below $20,000
As the United States enters the continuous holiday of “Memorial Day“, some Bitcoin bulls have felt like a needle on this issue. Some analysts and experts have warned that this will be a “bloody weekend” for cryptocurrencies, with the worst fear of falling. Breaking 20,000 U.S. dollars.
The U.S. stock market is closed on “Memorial Day” next Monday (31st), but the cryptocurrency market remains open 24 hours a day. In response, Yves Lamoureux, president of the macroeconomic research company “Lamoureux&Co.”, told “Marketwatch” on Friday (28th): “The bloody weekend of cryptocurrency is here.”
According to a report by the cryptocurrency news network “Cointelegraph“, Bitcoin may still fall below $20,000. According to CoinDesk statistics, Bitcoin has risen by nearly 24% so far this year, but it has now fallen back by nearly 44% from the high of $64,829.14 hit in April.
Lamoureux pointed out that as everyone knows, this weekend will be unpredictable for, mainly due to lack of liquidity. “If a shark smells blood in the water, it will (press liquidity) even lower. , And kill those weak competitors who are in trouble.” On the other hand, the high leverage of the cryptocurrency system has also increased the volatility.
“Baron Weekly” reporter Avi Salzman pointed out that basically there are currently two Bitcoin markets, one is dominated by mainstream brokers, such as Coinbase Global and Robinhood, and the other is dominated by derivatives investors. Investors don’t care much about whether the price of cryptocurrency rises, and they profit mainly by predicting asset trends.
The report pointed out that in such an environment, volatility will become more intense, especially at this moment of massacre, few investors are willing to enter the market again. Although there is no clear explanation for the momentum of cryptocurrency, it is certain that the price drop is a buying opportunity for long-term investors, but new investors may face major diving challenges.
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