Analysts commented on the decline in the price of bitcoin

On April 21, the bitcoin rate fell below $28 thousand. The price of the asset fell to $27.9 thousand. According to CoinGecko, at 20:40 Moscow time, BTC is trading at $27.8 thousand, it fell by 2.4% per day.

Meanwhile, on April 14, the first cryptocurrency updated its maximum since June 2022, approaching $31,000. But after that, within five days, Bitcoin lost $3,000.

The experts told RBC-Cryptowhy bitcoin fell in price and what factors may affect its value in the future, and also gave forecasts about the movement of the first cryptocurrency in the near future.

“Not strong enough”

ENCRY Foundation co-founder Roman Nekrasov

Bitcoin failed to stay above $30 thousand, the bulls did not have enough strength. The March enthusiasm has completely exhausted itself, in April there were local bursts, but the decrease in trading volumes on centralized crypto exchanges shows that most of the market participants prefer to sit back and watch what is happening from the outside.

April enthusiasm was associated with positive data on the slowdown in consumer prices. But it has already been won back by the market. The next event that can affect the course is the US Federal Reserve meeting (May 2-3), and traditionally, the volatility in the crypto market will increase a few days before the event, from which they are now waiting for signals about a slowdown in the key rate increase, as inflation in the US has slowed down .

This will affect the inflow of capital into risky assets such as stocks or cryptocurrencies. We also continue to monitor the banking crisis in the US. So far, there is a lull in the information field, but we should expect the spread of crisis phenomena, since the flight of capital from banks was significant.

“It’s too early to talk about the beginning of the fall”

Senior Analyst at Nikita Zuborev

Most likely, we see a continuation of the local trend that began on April 19th. In general, despite the psychological aspect of the $30,000 flat figure, overcoming it within the framework of a local movement does not have a big impact on the long-term trend.

Moreover, during the day, the depreciation of bitcoin amounted to no more than 3%, which is quite typical for the cryptocurrency market, so it is too early to talk about the beginning of a serious fall, we do not see serious grounds for this.

If we talk about the possible reasons for this local trend, then two factors overlapped and strengthened each other. On the one hand, the situation in the United States for crypto companies has become so tense that the largest American exchange Coinbase, which has been the “stronghold” of the crypto community in the United States since its launch, announced that it plans to change jurisdiction. The market at the moment always reacts violently to such statements, since access to the American market is important for the community, a significant share of trading is provided by American companies and private investors.

On the other hand, there was a correction typical of an uptrend. This is the third corrective movement since the beginning of January, when the current medium-term bullish trend began to form, offsetting the rapid pace of price increase. There are no major implications for the market yet, so we remain optimistic about the future, at least in the medium term.

“A Correction That Should Have Happened”

Head of Analytical Department AMarkets Artem Deev

The reasons for the depreciation of bitcoin are the release of the next portion of macro statistics for the UK, where inflation is again storming the peaks (above 10% against forecasts for a decrease to 8.5-9%). Bitcoin is influenced by sentiment in the stock markets: if the indices are falling due to some kind of negative, the coin also goes down and, conversely, grows with a positive on the stock markets.

Now we are witnessing a correction that should have happened – the growth of bitcoin, like other assets, cannot occur all the time. There are ups and downs that follow one after the other.

Depending on the further news background and the mood in the markets, the coin will balance in the range of $26-30 thousand over the next days or weeks.

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