Currently, bitcoin (BTC) seems to be in trouble, struggling to gain momentum. Indeed, the price of the flagship crypto is struggling to break above the $27,000 mark. This situation is causing a lot of concern within the Bitcoin community. There are now many uncertainties regarding the future trajectory of the crypto price. But, some analysts are already predicting a bleak future for the queen of cryptos. One of them, renowned strategist Michael J. Kramer, has recently been particularly pessimistic about the future price of BTC.
Increased Regulatory Uncertainty Affects Bitcoin Market
As bitcoin is seen as a cure for the 2023 banking crisis, analysts are raising concerns about its future. Market guru Kramer expects the price of the flagship crypto to fall below $20,000. He made his prediction on Twitter on May 21, worrying about an impending Bitcoin market crash. He pointed out that a decrease in the price of BTC to $20,000 is likely to have significant consequences for the entire stock market. After all, bitcoin serves as a barometer for various other risky assets.
Regulatory impact and macroeconomic evolution: two major challenges for bitcoin
It should be emphasized that bitcoin indicates the sentiment in the crypto market as a whole. So, if the flagship crypto dropped below $20,000, it could mean that investors are less inclined to take risks. This situation could foster increased confidence in the stock market and other asset classes.
Furthermore, CoinGecko has previously noted that BTC has lost 2.1% of its value in the past few days. Also, analysts seek to understand the factors contributing to the decline in the price of crypto. It appears that increased regulatory uncertainty plays a key role in the current state of the market. Similarly, the macroeconomic climate reduces the chances of seeing a significant rise in prices in the short term.
The recent actions taken by Democrats in the US House of Commons indicate that the crypto market is not out of the woods. Indeed, they have decided to strengthen the authority of the Securities and Exchange Commission over cryptos. Yet the SEC Chairman is convinced that cryptos are all securities. Thus, tokens may end up being classified as securities, which would subject them to stricter regulations.
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