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Current Bitcoin price drop like a spring, push it to $160,000 this year, but altcoin trader should look for another cover

Bitcoin price increased slightly by 3% after plummeting without brakes in the previous 48 hours and fell to the $31,000 region. This cryptocurrency has bounced up in the trading session a few hours ago but has not shown much yet. At press time, BTC is trading at $33,144, recording a 10% drop in the past seven days.

current-bitcoin-price-drop-like-a-spring-push-it-to-160000-this-year

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price slightly increased after the bearish storm

Statistical data shows that in the last 24 hours, Bitcoin traded as low as $30,190 and highest at $33,300. Bitcoin volume traded during this period was $40.5 billion, with a market cap of $618 billion.

BTC has been under intense bearish pressure recently. According to CoinMarketCap, the world’s most valuable and popular cryptocurrency has “lost” 10% in the past seven days. The reason is that China is increasingly tightening its control on cryptocurrency mining activities. As AZCoin News reported, the People’s Bank of China (PBoC) said it has summoned the leaders of several banks and payment companies to request increased supervision over crypto trading activities.

While BTC continues to hover around the $33,000 region, industry experts remain bullish in the long term. In it, Alex Mashinsky, CEO and co-founder of the centralized cryptocurrency lending platform Celsius, shared at the Bitcoin Conference 2021 in Miami that he sees Bitcoin hitting $160,000 this year, or possibly a bit lower.

“We haven’t seen the highs yet for 2021,” Mashinsky said. Mashinsky further remarked that the crypto market was bound for a correction, following Bitcoin’s recent all-time high of over $63,000: “When you go too high, too fast, you are bound for a correction. You can see my tweets in both March and February saying ‘we’re going to have a crash, we’re going to have a correction.’ I predicted $30,000. Bitcoin is like a spring – we stretch it too much and we put too much leverage. Too many people got greedy.”

However, altcoin traders should look for cover if Bitcoin undergoes major declines

According to Filbfilb, an independent market analyst and co-founder of Decentrader trading suite, a 30% crash in the Bitcoin market could prompt altcoins to drop twice as harder:

“Alts, therefore, carry significantly more downside risk than Bitcoin with Bitcoin threatening lows… if bitcoin were to fall lower, losing another 30% worst case.. id expects alts to correct to do 2x worse from here,” he added: “Dominance is likely to revert to previous 2021 highs.”

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Source: Filbfilb/Twitter

When Bitcoin was in a range of $50,000 to $60,000 between March and May, altcoins exploded. Likewise, the recent correction in the Bitcoin market, which saw the top cryptocurrency drop from around $65,000 to as low as $28,000, also caused a crash for altcoins.

Bitcoin’s declines across May and June pushed down its year-to-date performance to 5.71%. Meanwhile, while top-cap altcoins fell in tandem, their YTD returns fared far better.

In it, Ether can be seen falling over 60% from its mid-April peak of $4,384. However, the year-to-date return is 141%. Similarly, Dogecoin’s YTD return is 4.112% even after a nearly 80% drop from its record high of $0.76.

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Bitcoin YTD vs altcoins YTD in 2021 | Source: Messari

So, it seems, altcoins have offered a better profit opportunity for their holders than Bitcoin. As a result, investors could offset their losses in the Bitcoin market by simply selling their altcoin profits for fiat and/or rotate the funds back into BTC.

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