On the morning of December 4, the price of the first cryptocurrency fell by more than 20%. What are the prospects for Bitcoin after the crash?
On the morning of December 4, the price of bitcoin on the Binance crypto exchange dropped to $ 42 thousand (a fall of more than 20%). As of 14:40 Moscow time, the asset is trading at $ 46.3 thousand. Against the background of the collapse of the first cryptocurrency, the total capitalization of the digital asset market fell to $ 2.3 trillion. Also, a sharp collapse in quotations caused massive liquidations of traders' positions for $ 2.5 billion.
Nothing extraordinary
The decline in the cost of bitcoin is a fairly typical reaction of the market to the renewal of the historical maximum, says Nikita Zuborev, senior analyst at Bestchange.ru. The first cryptocurrency updated its all-time high above $ 69K on November 10. Since then, the asset has fallen in price by 32%. The analyst recalled that in the spring of this year, after reaching $ 64 thousand, the price of bitcoin began to decline and fell by almost 45% over the month. At the end of July, the value of the cryptocurrency began to actively recover, and after a few months it set a new maximum.
According to Zuborev, in the past few weeks there have been enough factors that indicated a change in trend. This is a decrease in the total cryptocurrency market capitalization to $ 3 trillion, and the beginning of the local "altseason" (a period of active growth of altcoins) and other signals.
“Globally, nothing has changed, long-term expectations of large investors are still extremely optimistic. Many, on the contrary, use the current correction as an excuse to increase their position in the portfolio, ”explained Zuborev.
If in the near future there is no serious change in the market, then by the end of the year the price of bitcoin may drop to $ 36-37 thousand (a 23% drop from current levels), the analyst predicted. In his opinion, the deep correction is likely to continue up to 50% of the last high of bitcoin (up to $ 33 thousand). After that, the asset will take time to accumulate volumes, so it will trade at this level for some time, Zuborev predicted.
“Over the next few years, expectations are more positive,” the analyst added.