News report by Coin World:
Bitcoin (BTC) is recovering after last week’s major crash, struggling to regain support at $56,000. Market sentiment remains cautious as concerns about further declines have caused the total market value to drop by 3.3% in the past 24 hours, reaching approximately $2.14 trillion.
What do experts predict?
Analysts suggest that the cryptocurrency market may reflect the ongoing bull market in major stock indices this year. Miners have temporarily halted operations due to equipment upgrades, and it is expected that they will resume soon. As institutional adoption of Bitcoin and altcoins increases, the impact of the fourth halving event may become more pronounced. Visit COINTURK FINANCE for the latest financial and business news.
Bitcoin analyst and economist Timothy Peterson predicts a bullish trend in the fourth quarter of 2024. He states that if Bitcoin closes above $50,000 in July, it is likely to maintain this level before October. Peterson adds that there is a 60% chance of Bitcoin trading higher within three months after a 25% drop from its all-time high, with a 25% chance of reaching a new historical high during the same period.
Why is the market impact significant?
Since its significant surge last year, Bitcoin has been in a notable correction phase. The adoption of Web3 protocols and cryptocurrencies by institutions has increased market liquidity and momentum. However, as summer approaches, liquidity is starting to dry up, and experts believe this is a key factor contributing to the decline in liquidity. They predict that this trend will continue until the end of summer.
Practical insights
Investors can draw practical conclusions from the current market conditions:
Pay close attention to the $50,000 price level as it may indicate future bullish trends. Take note of the forecasts for the fourth quarter as institutional activity may drive significant price fluctuations. Be mindful of reduced liquidity during the summer, which may result in increased volatility. Consider the impact of the US presidential election and potential interest rate cuts on market trends.
Despite the current uncertainty, there is still a high possibility of Bitcoin prices continuing to rise later this year, influenced by various economic and political factors. As the market adapts to these dynamics, interest in Bitcoin and altcoin investments continues to grow among investors and analysts.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies and the associated risks and should conduct their own research.
