While some experts are talking about the end of the bear market, other analysts are suggesting a potential deterioration of the situation in the crypto market. The time could no longer be for speculation, but for caution. Bloomberg issues the warning and predicts a depreciation in the price of bitcoin (BTC), ether (ETH) and other cryptocurrencies.
From optimism to worries
The adoption of the agreement on raising the US debt ceiling by the US House of Representatives and the US Senate as well as the possibility of the postponement of the interest rate hike in June by the Fed led to a recovery in the markets financial. And although some analysts are already announcing the emergence of signs of a bull season, it will not happen anytime soon, according to Bloomberg.
The American financial group warns of a cryptocurrency market crash in june. The company specializing in economic information and services for financial market professionals reveals that the US Treasury’s plan to replenish its balance could negatively impact the price of the queen of cryptocurrencies and other cryptos.
The US Treasury indeed issued about $1 billion worth of bonds after the debt ceiling agreement and is therefore exhausted.
An imminent fall in the crypto market?
Digital assets such as bitcoin (BTC) and ether (ETH) could bear the brunt of this decision by the Treasury to bail out its coffers, according to Bloomberg. The American group also relies on an analysis of some Citigroup experts who foresee an equally bleak outlook for cryptocurrencies.
Analysts anticipate extreme volatility and modest returns. They point out that the loss of US dollar liquidity could potentially trigger a recession. Fiona Cincotta, senior analyst at City, sheds light on the critical support threshold for Bitcoin. According to her, any break below the $25,000 mark would lead to a substantial depreciation in the value of this cryptocurrency. Fiona Cincotta raises the possibility that a strategic pivot by the Federal Reserve (Fed) in a more dovish direction could reverse the trend and stimulate a rise in the market.
At the time of writing, the price of bitcoin (BTC) is $27,259 and ether (ETH) is $1905. This imminent fall predicted by Bloomberg, despite the bullish cycle announced by Alex Krüger and many other analysts, will it take place? The days or hours to come will situate us.
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