Cryptocurrencies: they predict a collapse of altcoins that would drag down other cryptocurrencies

Cryptocurrencies: they predict a collapse of altcoins that would drag down other cryptocurrencies

The price of Bitcoin continues in a state of volatility, with strong upward and downward movements in a short period of time. After falling below US$25,000 on Monday, the price recovered this Tuesday to US$26,000. This Wednesday, the oldest cryptocurrency By market capitalization it operates at $26,149.56 Dollars.

This quick recovery was highlighted by several analysts, who expressed that a movement of these characteristics is unusual after the important fall in the price of BTC from yesterday.

The volatility of the price of Bitcoin is due to a number of factors, including global macroeconomic conditionsliquidity in the cryptocurrency marketregulatory developments and valuation.

Bitcoin: what worries the investor

In the macroeconomic sphereinflation remains a concern for investors, which is driving rising interest rates and declining spending. This has created a less favorable environment for risky investments, such as cryptocurrencies.

Liquidity in the cryptocurrency market has also decreased, which has made it difficult for investors to buy and sell their positions. This has contributed to increasing the volatility of the price of Bitcoin.

On the regulatory front, governments around the worldor are taking measures to regulate the cryptocurrency market. This has created uncertainty for investors, who are unsure how regulations will affect cryptocurrencies in the future.

Finally, Bitcoin valuation is also a contributing factor to price volatility. Bitcoin has outperformed traditional markets in recent yearsbut its current valuation is questioned by some analysts.

In this context, analysts are predicting a uncertain future for altcoinsas well as for the price of Ethereum, which also lost the support of US$1,600 and operates at US$1,595.65.

Markus Thielenan analyst Matrixportpublished a report titled: «Altcoin collapse is coming». In it, Thielen predicts considerable falls for both Ethereum as for altcoins in general.

Specifically, the Matrixport analyst expresses that If Ethereum were to fall to $1,500, could continue to decline even to u$s1,000. Likewise, he mentions that the market has fallen to levels that They haven’t seen each other since March.. Which has led the bears to regain control of the digital assets and has left many feeling uneasy and worried.

Bitcoin price volatility It is an inherent characteristic of cryptocurrency. However, the current volatility is unusual, and reflects the challenges facing the cryptocurrency market.

Source: Ambito

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