Bitcoin, the most valuable cryptocurrency on the market, has hovered between $33.000 and $40.000 since mid-May. Apparently, it has been one of the worst months for the cryptocurrency.
However, there are always surprises in the cryptocurrency sector. Bitcoin has already gone through similar situations and, although this has been classified as its worst month, it is now preparing for new scenarios.
Many wonder where the price of this cryptocurrency is heading? Several analysts have weighed in on the matter recently.
Inflation and holding
Experts mention that inflation is one of the factors that keeps the BTC market unstable. With the outlook of the pandemic, central banks have created a greater amount of cash, generating consequences in the world economy.
Saifedean Ammous, an economics professor, detailed in a debate that, compared to cryptocurrencies, inflation lowers global wealth by 10% annually.
For a few days, the price of BTC has been oscillating in the range of 30,000 USD. This has represented a savings opportunity for many; For others, a real challenge.
According to data presented by Glassnode, a platform specialized in blockchain analysis, the Bitcoin holding is growing. Participants who have been in the market for a long time were excited about this situation.
Cryptocurrency investor Lark Davis mentioned on his Twitter account that, “both miners and former holders are hoarding BTC. While new users continue to sell”.
Bitcoin is not going to back down
Decentrader analysts explained that “although the swings in prices are true, it is unlikely that Bitcoin will fall back to $20,000 or less”. They even mentioned that, “BTC is targeting much higher prices, between $100,000 and $200,000”.
Although the losses incurred during this month worry many users, experts believe that BTC could rise quickly.
