According to the quoted source, the investment bank Goldman Sachs reports that the decline in recent weeks raises questions for institutional investors, and the financial intelligence agency Medley Global Advisors warned that Bitcoin could fall below the threshold of $ 20,000.
“It is too early to declare an end to the declines in Bitcoin,” JPMorgan analysts say, citing a lack of Bitcoin funding and regulated futures contracts.
The currency rose 9 percent to $ 36,800 on Monday after a weekend that pushed digital assets to 40 percent below a record a month ago.
The crypto market has suffered a series of setbacks in recent weeks, largely due to criticism by Elon Musk of the huge amount of energy needed to mine Bitcoin and the Chinese authorities’ new series of regulations.
Recently, the Bloomberg Galaxy Crypto index, which includes Bitcoin and other cryptocurrencies, collapsed by 40%, the worst result since the beginning of the pandemic. At the same time, the value of virtual currencies fell by about $ 1 trillion, from a high of $ 2.6 trillion this month.
In the last year, more than $ 200 billion has been spent globally to buy Bitcoin, more than half of the total money thrown to the cryptocurrency. In mid-April, Bitcoin traded at nearly $ 65,000.
Ben Emons, managing director of Medley Global Advisors, says the possibility of a drop below the $ 20,000 threshold cannot be “ruled out.”
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