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Will Bitcoin Rebound? Here’s Where Five Experts See the Price Heading – DL News

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Bitcoin’s drop saw it fall below $55,000, breaking below its 200-day simple moving average.

The slowdown comes as Mt. Gox has begun reimbursing customers after a decade-long bankruptcy process that is expected to return about $9 billion in Bitcoin.

The influx of new investors comes as market watchers expect German Government to sell its Bitcoin holdings, which will also weigh on the markets.

So how big will the crisis be?

That’s what the experts say.

David Brickell of FRNT

David Brickell, Head of International Distribution at FRNT, said: DL News It’s hard to say how far Bitcoin will fall.

He sees signs, however, that the crisis may be reversing.

Macroeconomic factors “are aligning positively, with a weaker dollar and lower yields on expectations of Fed rate cuts and improving liquidity as major central banks adopt a looser policy stance,” Brickell said.

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Several factors suggest a turnaround.

“This latest wave could be enough to attract dip buyers who have been sidelined but remain long-term bulls and could well kick off the next leg of the bull market,” Brickell said. “Bulls will be on the lookout.”

Rachel Lin of SynFutures

Rachel Lin, co-founder and CEO of decentralized crypto derivatives exchange SynFutures, said the Bitcoin crash is driven by market expectations that Mt. Gox users will dump their tokens,

But “we could see a rebound if sales are lower than expected,” she said. said DL News.

Lin added that it was possible that the price of Bitcoin could fall further: “If there is enough selling to push the price down, we could soon reach the $50,000 level.”

Brad Howell of Keyrock UK

Negativity about the potential impact of Mt. Gox’s $9 billion drop on the market may just be a matter of sentiment.

That’s according to Brad Howell, managing director of cryptocurrency market maker Keyrock UK.

“We should put this in perspective,” Howell said. said DL News earlier this year.

Bitcoin’s daily trading volume averaged $30 billion in March, and the market handled $72 billion in volume when Bitcoin fell 8% on March 19, Howell said.

“That should give you an idea of ​​the volume it takes to move a market of that size,” he said.

Howell also said he doesn’t expect Mt. Gox creditors to sell their assets, as they are likely early adopters who are more likely to hold on to their Bitcoin.

“Don’t expect huge volumes to be dumped on day one,” he said.

Adam Morgan McCarthy of Kaiko

Adam Morgan McCarthy, an analyst at digital financial data firm Kaiko, said Bitcoin’s liquidity over the summer will play a big role in how its price moves.

“Liquidity tends to dry up during the summer months. We can already see what’s happening,” he said DL News.

“This means there is less support for selling pressure and prices can move more sharply. I expect this trend to continue throughout July, August and September.”

Jacob Joseph from CCData

Jacob Joseph, CCData research analyst, said DL News There are reasons to be optimistic, “despite the current challenges.”

He cited growing adoption of cryptocurrencies among institutional players – for example via Bitcoin cash exchange-traded funds – and the US elections “serving as positive catalysts” for a rally.

In the United States, both President Joe Biden and Republican candidate Donald Trump have taken an interest in cryptocurrencies.

Joseph said he would watch for seasonal effects in the summer, which often translate into lower institutional trading activity.

He will also keep an eye on key macroeconomic factors, including the inflation rate and the Federal Open Market Committee meeting later this month, for more clues.

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