On June 22, the crypto market dropped sharply, affecting top 100 cryptocurrencies in the market.
Let's take a look at Coinmarketcap's top cryptocurrencies as of June 2021.
BTC price briefly dropped below the $30,000 level to $28,893 on June 22, reaching 46.93% market dominance by 24th of June, according to Coinmarketcap. On June 23, the BTC price went up a little more to $33,990.
On the same day, the ETH price, according to Coinmarketcap, was $1,707. On June 23, the figure recovered, surpassing the $2,000 mark to $2,043.
On June 22, BNB dropped to $252.20, and on the next day, it went to $293.23.
China extended the crackdown on the BTC by targeting the mining industry, ordering to shut down all operations in the southwest province of Sichuan by Sunday. It’s evident that China bans crypto mining for good. Move came after the Chinese vice-premier promised the country would undertake severe actions against illegal securities activities and punish unlawful financial activities. As a result, Chinese miners faced forced self-evacuation pretty much nowhere. Consequently, BTC dropped to its January '21 low. CoinLoan and other companies registered in countries like Estonia do not experience the difficulties in operation given the financial license.
As for the total crypto market capitalization, the figure fell by nearly $230B between June 20 and June 22, according to Coinmarketcap, but managed to regain only $76B of its value by June 23. As of June 24, the total crypto cap is at $1.365T.
Is the cryptocurrency market going bearish?
The bear market is becoming the new trending term in the crypto industry, yet crypto analysts remain divided.
According to the Independent, cryptocurrencies now experience the same market pattern observed during the 1929 Wall Street crash and 2008 financial crisis.
CoinGape notes that the BTC price seems to be turning bearish faster than expected, referring to Michael Burry, known for his accurate prediction of the 2008 mortgage collapse, who also favors bearish sentiment. But what are the signals of going bearish?
Ki-Young Ju, CEO of CryptoQuant, said on his Twitter that the bear market is confirmed. Yet, days before, Ju also spoke of the market's overall state as neutral despite uncertainty. He posted a CryproQuant chart showing that too many whales are selling their BTC.
The chart indicates that most selling pressure comes from BTC whales and not from retail investors, meaning potentially larger sell volumes.
However, Ki-Young Ju also says that one indicator can't exactly predict the market's future due to high crypto volatility. Ju has an optimistic outlook stating the bearish trend would not last for long, as the market looks good in terms of supply/demand.
What’s next: market evaluation
What do experts predict for crypto markets? CNBC experts think that BTC will recover and stabilize its price in the short term, but the long-term trends are yet unclear.
MarketWatch refers to Louis Navellier, the chairman and founder of Navellier & Associates, who shares a pessimistic sentiment of BTC price dropping as low as $10,000. From his perspective, a break below $30,000 will cause a major downside, as most trading activity in 2021 happened above that level.
Rachel McIntosh from Finance Magnates notes that every time BTC makes a move one way or another, it tends to recover to a familiar level of $31,000-35,000 with no clear path forward. However, possible positive news was that BTC's fall below $30,000 didn't trigger a new wave of liquidations.
Some analysts believe the price drop was not a surprise because, in their opinion, the fall under $30,000 would most likely be followed by a quick recovery.
Marco Van Den Heuvel, Head of Community at Presearch, told Finance Magnates that a further price drop below that level would be good for BTC in the long term. He explains that a price drop may allow longer-term holders to scoop up BTC with a discount. Van Den Heuvel also predicts that while Bitcoin will most likely stay at its support level, prices for altcoins could drop by even 30-40% if BTC market dominance reaches over 50%.
Van Den Heuvel adds that Bitcoin and altcoins returning to their January price levels put people back into reality where making money can be easy but keeping it is a different story. It's all about risk management, especially if there are so many speculations. To avoid or minimise challenges, it’s vital to choose the risk management option that suits you best.
Market is remaining in a state of uncertainty, making some investors question their decisions and consider cryptocurrency management. To protect the assets, it’s vital to evaluate all options and choose one that offers transparent solutions.
Tools vary, from interest account deposit to taking a crypto loan and swapping, and it’s best to choose the one that suits you best to avoid dissatisfaction and confusion. You can learn more about them here. If you remain uncertain, our team is always happy to assist you with any inquiries you might have.
While crypto investors, analysts, and enthusiasts may view the cryptocurrency market's future differently, they all agree that at some point the market will recover. As for the bearish trend, views remain divided.
Jeffrey Ross, founder and CEO of Vailshire Capital Management, said to the CoinTelegraph that he expects BTC price to stay weak for the next one to three weeks, fearing liquidation after mining in China will see its end. Yet, he added that the overall outlook on crypto remains bullish in the long term as long as the market holds key technical targets above 12- and 48-month moving averages.
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The information provided by CoinLoan ("we,” “us” or “our”) in this report is for general informational purposes only. All investment/financial opinions expressed by CoinLoan in this report are from the personal research and open information sources and are intended as educational material. All outlined information is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information in this report.