Cryptocurrencies: what do analysts think?
Monetary policy tightening is a bearish factor for cryptocurrencies, so yesterday’s data may explain, at least in part, Bitcoin’s decline.
“On the one hand, the risk environment is very unfavorable, but we are seeing substantial support around $17,500-18,500,” says Oanda analyst Craig Elam. “If this holds up, the rebound could be strong. The question is how long it can hold out if risk assets continue to slide.“, he expresses.
What is the Bitcoin Lightning Network?
But while this news gives reason to the pessimists, the fundamentals of bitcoin are growing day by day, as the number of bitcoins in the lightning net continues to set all-time highs. There are almost 4,700 Bitcoin on the Lightning Network. Additionally, MicroStrategy announced Tuesday that it is working on solutions to bring millions of people onto the Lightning Network.
The Lightning Network is a scalability solution built on top of bitcoin, allowing users to quickly send and receive BTC with virtually no fees, “so if this is adopted globally, ‘crypto’ will have strong utility with a payment network,” says Sotiriou.
In the market, however, they are on alert due to the proximity of a possible “black swan” in September, which could take prices to the lowest in the year.
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Source: Ambito
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