For the first time in many months, the value of the first cryptocurrency is rising strongly.
Bitcoin exceeded 24,000 dollars this August 8, according to the Coinbase cryptocurrency exchange. The day after acquiring that value, the digital currency stood at 23,766 dollars at 10:00 GMT.
In general, July has been a positive month for cryptocurrencies. After a months-long decline in its value that culminated in June’s ‘crypto winter, its exchange rate rose by more than 17% in the last month, the best performance since October, reports Reuters.
This positive trend is not limited to Bitcoin alone. The value of the entire global cryptocurrency market exceeded 1.15 trillion in July, an increase of more than 255,000 million dollars since the end of June.
Meanwhile, in recent months the cryptocurrency market, in particular bitcoin, evolved in line with the indices stocks, especially the Nasdaq. This situation means that the cryptocurrency market becomes more interconnected to global economic trends.
Impact of the Fed
The general manager of Cryptorg, Andrei Podolyan, believes that bitcoin will go up to 25,500 or 26,200 dollars, reports RBC. The expert added that the increase is due to speculation surrounding the possibility that the United States Federal Reserve (Fed) relaunches its policy of ‘quantitative easing’ in the midst of the crisis and injects large amounts of money into the market as it did during the covid pandemic.
Bloomberg, for his part, states that on the contrary, the Fed has recently begun to reduce its balance sheet by launching a policy of ‘quantitative tightening’ coupled with a rise in interest rates. The central bank is winding down stimulus measures at an unprecedented pace. However, this tightening of monetary policy could be eased or reversed due to the current economic crisis.
What do experts think?
The opinions of the experts differ as to the evolution of the situation in the future. The optimists expect the cryptocurrency to exceed $25,000, while the pessimists forecast July a drop to 10,000 dollars.
Russell Starr, general manager of the investment company Valor, who maintains this last opinion, believes that the decline in the rate will last another quarter before there is a recovery to levels of $60,000.
According to Chris Terry, the vice president of the SmartFi lending platform, bitcoin will continue to trade in a range around $20,000, with variances of 10-15% for “weeks and weeks”, until more clarity about what happens next with the world economy.
Roman Nekrasov, a Russian expert, and co-founder of the cryptocurrency company Foundation ENCRY believes that the great crisis is over and it is unlikely that There’s another crash. Although he sees a temporary drop to $18,000, he still believes that bitcoin will break through the peaks of 26,000 and 29,000 dollars in the next few weeks.
Mike Novogratz, the founder of Galaxy Digital Holdings Ltd. and the so-called ‘Bitcoin Forrest Gump’, proclaims that “the worst is over” for the cryptocurrency industry, and although the current problems have increased mistrust among retail investors, the demand for cryptocurrencies is still important.