All Is Not Good In The Crypto Space

In the month of June, Bitcoin had fallen to its lowest which was almost 38%. This recorded Bitcoin’s second-biggest loss ever since its debut in 2009. Bitcoin had traded at over $31000 on the 1st of June and then again it had dropped to $17,700 in the middle of the month, and the month ended with Bitcoin at $19,209.

This indicates that the cryptocurrency space as a whole has been underperforming with the crypto market being subdued. Some of the reasons behind this can be high inflation rates, recession fears and the political turmoils between Russia and Ukraine, which in a way have been forcing investors to not take up any risks.

Ethereum which is the second-largest cryptocurrency in the world has been down by 0.51% at $1,054.50. Some of the experts in the crypto space believed that there were other prevalent factors too that led to such huge losses. Some of them include central banks’ monetary losses and a spike in COVID-19 cases.

Other experts have opined that bitcoin is expected to trade in a narrow range in the upcoming short term, they say that at this point in time almost everyone feels that bitcoin needs to wash out. This will possibly be filled with taking out short positions and resetting, resulting in a probable 80% retracement, which is a very common affair in the markets that are down in the $12000 to $13000 range.

Then there is the fact that central banks have renewed fears of rate hikes among investors at the start of this week at the European Central Bank’s annual forum. Jerome Powell, the Chairman of the Federal Reserve had in a way reiterated the commitment of the central bank by increasing interest rates in order to put a hold on inflation.

At the meeting of the European Central Bank, Powell mentioned that he was deeply concerned about inflation posing its challenges, even more than the probability that higher interest rates could perhaps lead the US economy into recession.

However, all that being said there are people that believe that bitcoin hasn’t hit rock bottom yet and they are very positive about the fact that Bitcoin has the capability to hit new highs and recover well from its current position. Some of them have even recommended the buying of bitcoin at a time when the price is still low, as they are of the view that in the next bull run the prices are going to be much higher.

In the crypto market, as well as in the stock market, it has always been the case that when someone sells their bit, there is always another person who is ready to buy. And, in this case, crypto experts believe that they are expecting a continuous shift in liquidity, and also a plethora of mergers and acquisitions (M&As) in the upcoming months, if not days.

Apart from Bitcoin and Ethereum, there are other forms of cryptocurrencies that have not been faring well too. They are as follows:

– Solana (down by 0.67%)

– Cardano (down by 0.45%)

– Stellar (down by 0.62%)

– Dogecoin (down by 0.48%)

– Polkadot (down by 0.42%)

– Shiba Inu (down by 0.09%)