Why did the price of the first cryptocurrency fall below $39 thousand and to what level is the asset able to decline in the near future.
During the week, the price of bitcoin decreased by 8%. At 10:50 Moscow time on February 20, the value of the cryptocurrency is $38.7 thousand. The last time the asset was traded at this level was in early February. Experts of RBC-Crypto explained what factors put pressure on the bitcoin exchange rate and in which case its value will continue to decline.
Lack of positivity in the markets
At the moment, there are no positive factors in the financial markets, explained Artem Deev, head of the analytical department of AMarkets. In his opinion, such a situation will be observed until March, since this month interest rates will be raised in the United States due to record inflation for 40 years. Due to the outflow of funds from risky assets, the price of bitcoin can fall to $ 34-35 thousand.
"There are no fundamental factors for strong growth, only temporary weak rebounds are possible," Deev added.
Increased geopolitical risks
Bitcoin is showing negative dynamics against the background of increased geopolitical risks, says Nikita Soshnikov, director of the Alfacash cryptocurrency exchange service. According to him, the escalation of the conflict in eastern Ukraine could negatively affect financial markets. Another reason for the decline of bitcoin, the expert claims, could be the risks of tightening monetary policy by the US Federal Reserve.
Soshnikov recalled that JPMorgan senior strategist David Kelly warned crypto investors about a possible collapse of cryptocurrencies. According to the representative of the investment bank, the Fed's actions will put an end to the era of "insane speculation" in the digital asset market.
"Despite the negative dynamics of the market, many participants of the crypto community believe in the prospects for further growth of cryptocurrencies," the expert noted.
If the degree of tension in the geopolitical arena decreases, bitcoin will be able to recover to the level of $ 45-46 thousand, predicted Soshnikov.
Sellers returned the advantage
This week, the technical picture on the crypto market has changed, says BitRiver financial analyst Vladislav Antonov. According to him, sellers have regained their advantage in the market. If the political situation does not return to the control of diplomacy in the near future, the value of bitcoin may drop to $ 35 thousand. This time, sellers will try to push the price of the cryptocurrency to $ 30 thousand, the analyst warned.
"Today, all investors are fixated on geopolitics. If the tension weakens, bitcoin will rise in price, it will increase - bitcoin will weaken more," Antonov explained.
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