Bitcoin loses more than 600 billion dollars in market value
Analysts: More losses in cryptocurrencies are a possibility
Bitcoin is expected to drop to $29,000 per unit.
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Two financial analysts said that further losses in cryptocurrencies are a possibility.
They explained to "Emirates Today" that "pessimistic expectations" could take the "Bitcoin" currency below $30,000, noting that the main pressure factor in the market now is the fear of official issuance of digital currencies through central banks.
recent report
A recent report from the “Cointelegraph Markets” website showed that the relative strength index of the “Bitcoin” has reached “oversold” since March 2020, coinciding with the current decline of the currency to below 34 thousand dollars.
He pointed out that the situation with regard to selling rates is similar to what happened in March 2020, in which Bitcoin was trading in the range of approximately $5,000.
The report pointed out that "Bitcoin" refused to stop the recent losses during the beginning of the third week of January 2022, when expectations of $33,000 and less are likely to become a reality.
Bitcoin, the largest digital cryptocurrency, continued its decline yesterday, and lost more than 58 percent of the record high level it achieved in November 2021. It also lost more than $600 billion of its market value, and withdrew the rest of the currencies with losses of more than $1 trillion, According to Bloomberg Agency.
More losses
The financial analyst and head of research at the global Equity Group, which is headquartered in London, Raed Al-Khidr, said that more losses in cryptocurrencies have become a possibility, expecting the decline of the “Bitcoin” currency to levels of 29 thousand dollars per unit.
He added to "Emirates Today" that the downward wave is still continuing, and the matter is generalized to all cryptocurrencies, not just Bitcoin.
Al-Khidr explained that the acceleration of the decline last week is the result of the decline that occurred in the stock markets, pointing out that all high-return assets witnessed sharp declines yesterday, due to monetization of digital currencies, to face the risks of losses and cover them, in addition to profit-taking operations for fear of falling. More severe, the expected change in monetary policy in the coming period.
He said, "These are the combined factors that led to the pressure of the digital currency markets, led by (Bitcoin) to more declines."
The Greens expected that the first half of this year will witness continuous pressure on digital currencies, but on the positive side, the attractiveness of these assets increases more than the occurrence of price collapses.
He continued, “When we saw the price collapse, it fell from the levels of $69 thousand for (Bitcoin), down to the current levels of 32 thousand, which raises the appetite of speculators and investors, and it will also be a good opportunity for investors,” noting that this does not change the supply policy. And demand, and we may also witness a return to the rises for digital currencies and “Bitcoin” in particular.
pressure factor
For his part, financial analyst Waddah Al-Taha said that “pessimistic expectations” could take the currency below $30,000, noting that these expectations are linked to the news circulating about the “US Federal Reserve” and the possibility of issuing a digital dollar, which will give an indication to the rest of the banks. Global centralization by issuing its own digital currencies.
Al-Taha explained that this is the main pressure factor in the market now, which is the fear of official issuance of digital currencies via central banks.
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