Cryptocurrency investors found little reprieve on June 22, when the price of Bitcoin (BTC) fell below $ 30,000 for the first time since January, causing panic among less experienced market participants who have not yet gone through a full market cycle.
While Bitcoin has been under increasing pressure from multiple sources since the beginning of May, the recent sell-off has been largely attributed to the surrender of China-based miners who were forced to abruptly cease operations.
Data from Cointelegraph Markets Pro and TradingView show that Bitcoin price bounced back above the $ 30,000 level after falling to $ 28,800 and is currently trading at $ 32,600.
The boom came after comments from Brian Nelson, the current candidate for Undersecretary of the Treasury Department of Terrorism and Financial Crime. Nelson said he will make implementing new regulations around the cryptocurrency a priority if confirmed.
Raid on miners in China causes market turmoil
The pressure on Bitcoin and the entire cryptocurrency market has been highlighted by Élie Le Rest, partner at digital asset management firm ExoAlpha. Le Rest told Cointelegraph that “Chinese market players have sold massively in the last month”.
Le Rest also referred to the “grayscale release plan that leads to more pressure to sell” which has led to some panic selling among the less experienced dealers in the market.
Le rest said
“As newcomers to the crypto market see their profits and capital being wiped out by waves of sales, newcomers accept their loss because they can no longer endure so much negative volatility.”
Given this pressure, Le Rest believes the market could be in the “lower tranches of $ 25,000 to $ 35,000” in July, with the low volume typically seen in August having the potential to “accelerate this downtrend.” or to build the upward trend ”.
The positive argument for today’s move was provided by David Lifchitz, Managing Partner and Chief Investment Officer of ExoAlpha, who stated that the ETH on 22nd) at 1,700 US dollars, given the rapid upturn. “
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That being said, Lifchitz warns not to ignore caution, as the volatility of the crypto market makes choosing a floor notoriously difficult.
“However, it is too early to say whether this is“ the ”low point or just a temporary bottom before moving further down. The lack of an upward catalyst (aside from some contrary oversold metrics) remains the biggest hurdle for cryptos to recover … Paging Mr. Musk, Paging Mr. Musk. “
Altcoins are seeing double-digit losses
The altcoin market followed Bitcoin’s lead on June 22nd, with the majority of tokens posting double-digit losses as traders raced for the safety of stablecoins.
The price of Ether managed to rebound along with the price of BTC, which helped cancel out a 15% correction and send the price back above $ 1,900.
Two tokens that managed to rise above the market turmoil and post positive gains for the day were Livepeer (LPT), which rose 15% and Celo (CELO), which saw price rise 9%.
The total market capitalization of the cryptocurrency is now $ 1.303 trillion and the dominance rate of Bitcoin is 47.1%.
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