Bitcoin quotes began to move after several weeks of sluggish fluctuations in a sideways trend: the goal of $ 24 thousand per coin was reached, so now it remains to wait for the next one – $ 20 thousand. This mark is quite an important milestone, because the price of bitcoin has never fallen below the highs that were reached in the previous cycle – the level of $ 20 thousand was first taken at the peak of the 2017 rally. However, no one promises anything on the market, which means there is a high probability of a further decrease in the capitalization of the market as a whole and the cost of bitcoin to $ 10 thousand in particular.
The reasons are banal
No one wants to buy a cue ball, while the big players direct the price to a more suitable zone to start consolidation. The problem is that bitcoin costs a lot of money and it becomes more difficult to manipulate it than at least 2018-2020, as a result of which it is likely that its price can be lowered twice more and from there, with renewed vigor, start a new rally. This process can take a long time – growth can begin only in 2023, so you should not take unnecessarily risky actions.
Of interest, it is worth noting the situation with the centralized DeFi project Celsius, which had assets of $ 12 billion and about 2 million customers. The company has notified users that due to “extreme market conditions” it is stopping withdrawals and transfers between accounts. Only since the beginning of May, the value of the CEL token has collapsed by 90%. The project has a large position on synthetic ETH – stETH. This token is a secured 1 to 1 version of ETH deposited into the ETH 2.0 contract for staking. Now there is a serious “depeg” (unbinding of the course) due to large-scale sales of stETH, which can lead to the liquidation of the position and the collapse of another major project.