May 25, 2022

Analyst at ICB Fund “To bring the price of bitcoin to $20 thousand in the current conditions is quite realistic”

Analyst at ICB Fund “To bring the price of bitcoin to $20 thousand in the current conditions is quite realistic”

Over the past 7 days, Bitcoin has suffered serious losses, and the most devastating day was May 9, when BTC lost about 12% and reached the level of $30,000.

This mark was a medium-term goaldownward movement, which began to develop at the very end of March. The next milestone is lower: it is quite realistic to bring the price up to $20,000 per coin in the current conditions.

Altcoins feel even worse, losing 20% ​​to 30% of capitalization. The native token Terra LUNA distinguished itself, falling by more than 90% over the past week due to problems with the "native" stablecoin UST, which collapsed to $0.62. Recall that stablecoins should be pegged to the real dollar at a ratio of 1:1, so the current situation makes investors worried.

It all happens against the backdrop of a stock sell-off.US assets. There are many reasons for this: from the already bored expectations of tightening monetary policy, the outbreak of coronavirus in China, concerns about the European economy, and relatively new ones, for example, an increase in the yield of 10-year treasuries to 3%. This figure has almost doubled since March and significantly changed the balance of power in the market.

Now the yield spread of treasuries and almost allAmerican sectors is in the negative zone. The exception is the energy sector, whose representatives are in high demand when it comes to hedge inflation and geopolitical risks. If you look closely at the dynamics of various sectors, it turns out that commodity companies feel much more confident than all the others, and even better than technology ones.

In other words, the situation is nowas much as possible not in favor of expensive technology players, which means that you should not expect any positive for the cryptocurrency, which is highly correlated with this segment.

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