Experts Doubt Bitcoin’s Friday Surge Longevity
Bitcoin, along with other cryptocurrencies, has experienced a resurgence after reaching historic lows. As of today, the price of Bitcoin has climbed above $70,300, recovering from a significant drop. However, experts remain skeptical about the sustainability of this surge.
Experts Doubt Bitcoin’s Friday Surge Longevity
Michael Terpin, an early Bitcoin investor, expressed caution regarding the recent rebound. He predicts that while Bitcoin might temporarily rise above $80,000, a more significant drop could follow. Terpin remarked that selling pressure could emerge as investors capitulate, particularly at the support levels of $65,000 and $60,000. If these levels falter, Bitcoin prices could plummet to as low as $45,000.
Market Analysis and Predictions
Other analysts share similar concerns, suggesting that Bitcoin could potentially fall to around $40,000 if current trends persist. A recent report from CryptoQuant highlights the role of large holders, often called “whales,” who are heavily involved in market activities. Their actions frequently indicate substantial selling or hedging behaviors, posing risks to overall market stability.
Allen Ding, Head of Bitfire Research, noted that the market’s recovery might be limited due to the pace at which institutional capital returns. He warned that the continuous selling by major holders could lead to further price fluctuations.
Challenges for Bitcoin Miners
Despite the recent price increase, Bitcoin miners face financial obstacles. Current prices remain significantly below the average mining cost of $87,000 per Bitcoin. This scenario often signifies a bear market, complicating the outlook for miners amid price volatility.
- Bitcoin price rise: Surged over $70,300
- Potential market drop: Experts predict possible lows of $40,000 to $45,000
- Mining cost: Average cost to mine one Bitcoin is $87,000
As the cryptocurrency market remains turbulent, investors are advised to proceed with caution. The recent price bounce might not herald a definitive recovery, but rather a precursor to potential declines ahead.
