With bitcoin price hovering around the $20,000 mark, market observers expect its trading to continue between $18,000 and $22,000
After a topsy-turvy ride, it seems bitcoin has stabilised with it being predicted to trade between $18,000 and $22,000, based on its price range for the last couple of months. On July 17, cryptocurrency bitcoin’s price fell below the $21,000 mark. At the time of writing (12.19 pm, Indian Standard Time), the global cryptocurrency market capitalisation reached a $1.01 trillion valuation while bitcoin traded close to the $22,000 value, according to cryptocurrency assets price-tracking website CoinMarketCap. “Bitcoin is hovering close to the $20,000 mark because of the community and investors who still believe in the currency. Due to the cryptocurrency’s nature and limited supply, its price is expected to increase in the future,” Agam Chaudhary, a serial entrepreneur and investor in Web3.0 space, told FE Digital Currency.
Various market reports stated that volatility in cryptocurrency markets is because of factors such as the global pandemic, influence of stock markets, decisions by governments, and the bullish nature of Web3.0 space. According to the Twitter handle of blockchain analytics firm Glassnode, over 80% of the total United States Dollar (USD) denominated wealth has been held on by investors for around 3 months, irrespective of market volatility. “Rules must be suggested for traditional brokerage to protect investors in the event of cryptocurrency failure. Investors need to follow the Federal Reserve Interest rates and US gross domestic product (GDP) figures, as they can drive cryptocurrency prices up or down,” Anndy Lian, chief digital advisor, Mongolian Productivity Organisation, a governmental organisation, stated.
Moreover, according to experts, the current scenario is not sustainable to invest in bitcoin due to global macroeconomic issues and the fluctuating regulatory landscape. The unregulated cryptocurrency market is primarily driven by market participants’ sentiment, Gaurav Mehta, founder, Catax- Simple Crypto Taxes, a cryptocurrency taxes based software-as-a-service (SaaS) company, said. “Recent events have demonstrated how susceptible cryptocurrency markets are to manipulation and mismanagement. I believe that the scenario will continue to deteriorate due to declining market conditions, which will put pressure on the emerging cryptocurrency economy,” he added.