As bitcoin price trades above $23,000, market investors express concerns over its viability
On July 20, cryptocurrency bitcoin’s price crossed the $23,000 mark. At the time of writing (11.18 am, Indian Standard Time), bitcoin traded close to the $23,500 range while its market capitalisation stood around $448 billion, according to cryptocurrency assets price-tracking website CoinMarketCap. “I believe bitcoin is showing signs of stablisation but the cryptocurrency market may not yet be out of danger. Cryptocurrency has fallen below $20,000 several times in recent weeks, and sellers are observing to see if the June lows will hold,” Raj Kapoor, founder, India Blockchain Alliance, a think-tank, told FE Digital Currency.
In addition to macroeconomic factors, investors have expressed concerns regarding the cryptocurrency industry’s long-term viability after many cryptocurrency platforms have halted withdrawals, sacked staffers, and tried to stem losses in recent weeks. According to blockchain analytics firm CryptoQuant, bitcoin miners moved 14,000 bitcoins out of their wallets, signalling more sales could happen to cover their ongoing mining costs. As stated by Amanjot Malhotra, country head- India, Bitay, a cryptocurrency exchange, the overall behaviour of bitcoin price is downward but is briefly trending upward. “Any breakout on either side of the price range between $17,000 and $23,000 will lead to a breakout from the current price zone. If a weekly close above $23,000 is seen then a short bull run to $28,000 is possible, but I feel it is unlikely to happen,” he added.
Various market reports stated that spot trading figures tumbled 28% in June to around $1.4 trillion, which’s been the lowest since December, 2020. However, experts opined that a recovery in bitcoin price could be happening. “The system faced setbacks with failure of Celsius and Terra Network stablecoins but it is a sign that the blockchain market is improving, and is heading towards becoming mainstream. Previously, downturns in digital assets meant investors sold them at a loss because of the lack of confidence in that area. Now, behaviour towards investments in digital assets has changed,” Pratik Gauri, founder and CEO, 5ire, a blockchain platform, stated.
