The funding and evaluation agency Fundstrat Global Advisors warned its purchasers that the already struggling cryptocurrency market goes to the touch a brand new low, in response to a Bloomberg report.
In an electronic mail letter to the merchants, the agency’s strategist Robert Sluymer predicted that contemplating the present market traits, the worth of Bitcoin and different altcoins would possibly plunge additional.
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“The worth construction for many cryptocurrencies stays weak and seems susceptible to a pending breakdown to decrease lows,” Sluymer famous.
Since January 2018, the cryptocurrency market has maintained a bearish pattern. The complete market cap went down from its peak of $827 billion to $112 billion regardless of the addition of tons of of cash within the meantime, in response to Coinmarketcap.com. The market chief Bitcoin has endured heavy losses because it shed greater than 80 % of its worth since December 2017.
Once traded round $20,000, a single BTC is now priced at $3,425, as of press time.
Bull Turned Bear
Fundstrat prediction has attracted a lot consideration given the truth that the agency was at all times bullish on Bitcoin and different cryptocurrencies. In January 2018, when the market was hovering at its peak, the agency’s co-founder Tom Lee predicted that, by 2022, Bitcoin would possibly contact $125,000. Weeks after that when the asset gained a downward tempo, a brand new excessive above $19,000 inside 5 months was predicted by Lee.
Bitcoin’s dropping worth has additionally made it very troublesome to proceed its mining. According to a lately revealed JPMorgan Chase report, it takes $4,060 to create one Bitcoin, which is far above the market worth of the token.
According to Sluymer, smaller cash are at extra threat in comparison with Bitcoin.
“A break beneath the fourth-quarter lows at $3,100 would indicate a decline to $2,270, whereas a transfer above $4,200 is required to sign Bitcoin is starting to enhance,” he added.