July 25, 2021

The cryptocurrency market continues to decline amid a shortage of demand

The cryptocurrency market continues to decline amid a shortage of demand

Bitcoin continues to experience a lack of demand.The recovery of quotations to $ 33,000 on Wednesday, stimulated by assurances from the head of the Fed that there is no rush to revise the quantitative easing program amid rising inflation, could be a good signal for the end of the downward dynamics that has continued since the end of June, but buyers did not build on the success.

On Thursday, the BTC rate hit its lowest in the last two weeks and further increased the rates on the short-term vector. Leaving below $ 31,000 may trigger triggering stops on long positions, as a result of which the current phase of consolidation may be replaced by an impulsive movement down to $ 20,000.

“The graph looks 'terrible',” said one of themajor bond managers Jeffrey Gundlach, and it's hard to disagree with him. At the same time, there are still chances of a rebound to the upper border of the consolidation of $ 30,000- $ 40,000 - the spring has not yet unclenched.

The current disposition is indeed driven by a shortage of demand. The market “horror story” about institutional investors selling bitcoin trust from Grayscale Investments has not yet been confirmed.

Federal Reserve Chairman Jerome Powell's statement thatafter the appearance of the digital version of the dollar, the world will not need stablecoins and cryptocurrencies, in general, they cannot but cause a smile. Probably PayPal, which raised the limit of weekly purchases for US customers to $ 100,000, is making the wrong strategic move. Like Square, which announced the development of a service for creating DeFi services, is mistaken and throws money down the drain.

However, for the institutions that determine the weatherin the market, regulatory certainty is needed. But it does not exist yet and the situation is not changing for the better yet. In the UK, they decided to spend money on social advertising about the risks of cryptocurrencies. And the US Department of Justice announced that Binance is required to help in the investigation of criminal offenses.

As a result, against such an information background,retail investors can't lift the market, and big players don't want to. The current situation can be resolved on the weekend. A good option is to bring the market beyond the boundaries of consolidation at this very time, in order to provide emotionality to trading on Monday with the return of the main group of participants.