Bitcoin, the leading cryptocurrency, recorded a brief rally on the eToro platform last week, crossing the $31,000 threshold: will this change the long-term forecasting?
However, it failed to hold this level for more than a day as the market remained cautious. For the past month, Bitcoin has been trading around $30,000, waiting for positive news to trigger a more significant move.
eToro: Bitcoin fails to maintain $31,000 level, but forecasting still remains positive
The recent rally coincided with the court victory of XRP, a popular altcoin, which prompted a surge in several alternative cryptocurrencies. The price of XRP rose 60%, although for Bitcoin the enthusiasm was short-lived.
Currently, BTC is trading just under $30,000.
Ether, the second-largest cryptocurrency, experienced a similar rally at the end of the week, briefly exceeding $2,000 before retracing to around $1,900, where it currently sits.
Where do we stand on the Bitcoin ETF application?
BlackRock’s Bitcoin ETF application has reached an important milestone, having been officially accepted for review by the US regulator.
Although approval is still pending, this step is critical to the instrument’s prospects. BlackRock had to resubmit the application earlier due to the SEC’s request for additional details on oversight sharing.
The introduction of Bitcoin ETFs and similar proposals has recently caused a stir in cryptocurrency markets as investors have welcomed major institutional developments for Bitcoin.
Although much of the news has already entered the market, the official acceptance of an ETF could still have a profound impact on market sentiment.
The Bitcoin halving event is also on its way
According to JPMorgan analysts, Bitcoin’s upcoming halving event will be a significant “stress test” for miners.
During a halving event, the block reward for mining new Bitcoin is halved. This doubles the computing power required for mining, while miners receive less reward for their efforts.
The investment bank suggests that miners will have to see a decrease in energy costs and a significant increase in the price of Bitcoin to maintain the profitability of the mining process.
The next event is expected to occur around April or May 2024. As this event approaches, the market may experience changes depending on prevailing conditions.
In theory, the halving makes Bitcoin scarcer as the issuance of new coins decreases, which can support the price.
However, if miners find it financially difficult to continue their operations, there could be network congestion or other problems due to the abandonment of validators.
eToro: Bitcoin’s forecasting depend on many factors
The future trajectory of Bitcoin and the broader cryptocurrency market remains uncertain.
As market participants continue to monitor regulatory developments, institutional adoption, as well as mining dynamics, any significant news or event has the potential to affect market sentiment and trigger significant price movements.
Investors and market participants should closely monitor these developments, which could have a profound impact on the direction of the cryptocurrency market.
While short-term price movements can be unpredictable, long-term trends can be influenced by factors such as regulatory decisions, institutional adoption, and the sustainability of mining operations.
It is essential that investors exercise caution and conduct thorough research before making any investment decisions in the cryptocurrency market.
The inherent volatility of the cryptocurrency market requires a comprehensive understanding of the risks involved.
Diversification and a long-term investment approach can help mitigate some of the uncertainties and provide a more balanced investment strategy.
While the market continues to move cautiously and look for positive catalysts, it remains to be seen how Bitcoin and other cryptocurrencies will perform in the coming months.
Market participants need to stay informed, vigilant and prepared for potential market fluctuations as the cryptocurrency landscape continues to evolve.
Source: https://en.cryptonomist.ch/2023/07/17/bitcoin-etoro-here-forecasting/