Analytics
Reading time: ~2 m
Analysts interviewed by RBC-Crypto told what provokes investors’ interest in cryptocurrency, what events affect the change in the bitcoin rate and what marks it can reach at the end of the month
“RBC-Crypto” does not give investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
On the morning of May 24, Bitcoin (BTC) is trading at around $27,000, since the beginning of the month it has lost about 9% in price.
26 700 -623 (-2,28%)
May 24 10:58:39
Analysts interviewed by RBC-Crypto told what provokes investors’ interest in cryptocurrency, what events lead to a change in its rate, and what marks the price of bitcoin can reach at the end of the month.
“The price will still go up”
Head of Analytical Department AMarkets Artem Deev
“Bitcoin, after a recent drawdown, gained more than $660 and confidently stepped over the $27,000 mark. The temporary weakening can be attributed to the instability of the US banking sector. A recession inevitably leads to an increase in the cost of lending rates for individuals and companies, and investments lose their profitability. Therefore, investors tend to invest in conservative instruments, such as government bonds.
But it cannot be said that interest in bitcoin has cooled. The US Treasury is now actively working to reduce inflation, and if it succeeds, the cryptocurrency will go up again.
When the economy is on the rise and the investment climate improves, investors tend to diversify their portfolios with high-risk assets. So even if the current Fed rate is maintained, bitcoin will still rise in price, just a little slower.
So the optimistic forecast for the end of May is up to $30 thousand, the realistic one is about $27.5-28 thousand.
“No negative news for the crypto market”
Financial Analyst BitRiver Vladislav Antonov
“On the morning of May 24, the bitcoin rate fell sharply, by almost 2%, dropping to $26.6 thousand at the moment. It is important that the cryptocurrency stayed above the most important mark of $26.5 thousand — it acts as a strong support.
Among the main factors that influence the financial markets, including the cryptocurrency one, is the expectation of a deal on the ceiling of the US government debt, as well as the publication of the May minutes of the US Federal Reserve meeting.
Yesterday, another round of talks on a national debt ceiling between Joe Biden’s representatives and the Republicans ended, but there is no progress. This inhibits the activity of buyers.
Representatives of the Fed hold different opinions on further changes in interest rates. The probability of keeping the rate at the meeting on June 14 is reduced: now it is estimated at 68.7 against 77.5% on May 16.
At the moment, there is no negative news for the crypto market, so the consolidation plays for the buyers. The situation may change if the bitcoin rate drops below $26.5 thousand, in which case we can expect an increase in negative dynamics.
On the contrary, if buyers manage to overcome the resistance of $27.5 thousand, further sharp growth of quotations can be expected.
Until the end of May, there is a high probability that the lateral movement of the bitcoin rate will continue. Already after June 1, according to seasonal cycles, the cryptocurrency may show a short-term price increase up to $34,000.”
#bitcoin #cost #Opinions #professional #analysts
