Bitcoin ($BTC) is up by 3.07% in the last 24 hours. It is exchanging hands at $59,054.44 at the press time. The flagship digital token was once closer to surpassing its ATH. It went on to mark a steep decline. Two factors contributed to the situation: the German government selling Bitcoin tokens and Mt. Gox announcing its plans to settle with the victims of the 2014 hack. A rebound is on the horizon, along with speculation if the token could fall any further, for it brings out a crucial decision about expanding one’s portfolio.
For starters, Bitcoin is highly volatile. The value that the token demonstrates, say, at 1 pm, quickly changes to a higher or a lower value in the next 1 hour. The ongoing volatility of Bitcoin is 5.94% amid the FGI of 28 points with prevailing bearish sentiments.
Next, the German government is selling seized Bitcoin tokens. The German Government undoubtedly possesses a substantial amount of Bitcoin assets, but it may decide to liquidate them all at once. This is bound to increase the selling pressure that will be mounted further by Mt. Gox. The only exception is the acceptance of the now-defunct exchange platform’s actions. Creditors have been demanding settlements almost since 2014. They are getting their dues—potentially bought in 2013—now.
K33 Research has estimated that the market will have to absorb selling pressure between $4 billion and $7 billion in the middle of the year. It is still plausible that the pressure will resurface later, or at the end, of this year.
External factors also include concerns about inflation and rate-cut decisions. The Federal Reserve is likely to deliver a call on rate cuts in September 2024. A favorable decision will fuel a surge in its value, while an unfavorable decision will test the actions of the ecosystem. Inflation concerns are coming back and could go on for a while. It will add complexity to the crypto market’s global liquidity supply.
A positive resistance mark is $60,000, followed by $55,000-$56,000. However, it is difficult to disregard a decline to $50,000.
The optimal leverage level is between 2.2 and 1.8. It is often volatile and fluctuates depending on the conditions. Bitcoin started the year at around 0.17 and was up to 0.216 in early June 2024. Ongoing accumulation holds the key, despite anticipated declines. Near-term predictions are bullish, as the next 30 days are expected to see a surge of 37.73% to a value of around $79,928. Long term Bitcoin price prediction expect the flagship digital token to end the year above $100,000.
It is right to conclude that investments in Bitcoin should be made in accordance with one’s investment objectives and strategies. Thorough research and risk assessment are mandatory. Bitcoin is close to marking a pivotal moment, followed by fluctuations and an eventual upward trajectory. Make a decision only after understanding the crypto sphere and volatility.
