Experts’ Opinions on Whether Bitcoin Has Reached Its Bottom
Bitcoin’s price volatility has been a topic of interest for crypto enthusiasts as the asset climbs back up to $62,000 after a recent dip. The asset experienced some relief following a turbulent day but has been on a downward trend throughout June, dropping as much as 16% from its recent highs. The Federal Reserve’s hawkish stance post-June policy meeting has added pressure on risk assets, including Bitcoin.
Grayscale’s Zach Pandl highlighted three key factors contributing to the current market dynamics. Outflows from spot Bitcoin ETFs, the selling of seized Bitcoin by the German government, and expected selling from Mt. Gox creditors have created an “overhang” affecting Bitcoin’s price. Despite these challenges, Pandl believes that Bitcoin’s fundamentals remain intact and expects valuations to recover once these selling pressures subside.
Bitwise CIO Matt Hougan compared the impact on Bitcoin’s price to “lock boxes,” where various events like bankruptcies or seizures historically reduced supply. However, the recent repayment of Mt. Gox’s customers, who lost Bitcoin in a hack in 2014, could potentially flood the market with around 6,500 Bitcoin.
Looking ahead, the approval of spot Ethereum ETFs for trading this summer could serve as a positive catalyst for the overall crypto market. Pandl remains optimistic about the asset class and sees attractive entry points for investors with a longer time horizon.
On a broader scale, Nvidia, the AI leader on Wall Street, has faced recent headwinds, with shares slipping 7% over the past week. As the tech-heavy Nasdaq also experienced a slight retreat, the market remains dynamic and ever-changing.
As the crypto market navigates through these challenges, experts anticipate potential recovery and positive catalysts on the horizon, offering hope for investors in the digital asset space.
