Forex Analysis & Reviews: 02.06.2022 - Bitcoin starts June with...

02.06.2022 12:14 PM

Bitcoin starts June with decline aiming to hit bottom

On Thursday morning, the flagship cryptocurrency was trading sideways. At the time of writing, BTC is hovering at $29,821. According to the price-tracking website for cryptocurrencies CoinMarketCap, over the past 24 hours, the lowest price of Bitcoin reached $ 29,501, and the highest price was $31,848.

At the same time, on May 30 and 31, Bitcoin reached above $32,000 for the first time in three weeks. During the last seven days of May, Bitcoin soared by 6.6% and showed strong growth for the first time after nine weeks of permanent decline. Prior to that, the series of declines did not exceed seven weeks.

Over the past two months, the BTC price collapsed by 1.6 times to $ 29,000 from $ 45,800. At the same time, Bitcoin has lost 30% since the beginning of spring. Since November 2021, when the asset hit a new historical record, soaring above $69,000, the cryptocurrency has lost about 60%.

Altcoin market

On Thursday, Ethereum, Bitcoin's main counterpart, also began the trading session with a sideways movement. At the time of writing, ETH reaches $1,829.The altcoin broke through $2,000 in the last days of May, but with the onset of summer, it lost its optimism and rolled back to its previous level.

As for cryptocurrencies from the top 10 by capitalization, the highest result in the past 24 hours, Polkadot gained 0.6%, and Solana lost 12.37%. At the same time, all other coins from the top 10 reported steady declines.

By the end of last week, Solana was the main loser among the leading cryptocurrencies dropping by 4.43%, and the top gainer was Cardano soaring by 11.61%.

According to CoinGecko, the world's largest aggregator of virtual asset data, in the last 24 hours, Waves skyrocketed by 15.1% and topped the list of the top 100 most capitalized digital assets. Terra Luna Classic plummeted by 16.0% and hit the bottom of the list of outsiders.

Expert forecasts for June

May turned out to be a month of losses and permanent pessimism for the first cryptocurrency. Thus, over the past month, Bitcoin lost about 20%.

According to The Block, the US company that develops solutions for receiving and processing electronic payments, in May, BTC miners earned $906.2 million including $16.18 million of commissions. This indicator of mining profitability was 21.6% lower than the April results. At the same time, the income of Ethereum miners increased by 1.08 times compared to April.

As history shows, June is not the best month for Bitcoin. Thus, in the past 11 years, since the first cryptocurrency started trading, the asset closed the month with a drop in 4 cases and an increase in 7.

Lately, crypto experts have started to say more and more often that Bitcoin is following the scenario of 2018. If this trend is taking place, we can assume that the main digital asset will continue to decline in the coming month.

In addition, many analysts of the cryptocurrency market suggest that the entire summer of 2022 will be unsuccessful for BTC, and in August, the asset may even reach the bottom.

In addition, experts believe that the military conflict in Ukraine and market participants' fears about the prospects for the global economy are the key downward factors for the BTC in June and August. In the near future, in their opinion, the spread of monkeypox may also negatively affect the coin.

At the same time, analysts with a more optimistic outlook believe that Russia's move to legalize mining may trigger growth in Bitcoin this summer.

The launch of Ethereum 2.0 this fall could be another supportive factor for the digital asset market.

Thus, crypto-enthusiasts opinions on how June will be for its leading asset are divided. Some see great potential for Bitcoin's growth, while others see many reasons for its decline. At the same time, some analysts are confident that even in the case of a positive movement of BTC in June, the coin will continue to correct later.

It is also possible that in the summer, the first cryptocurrency may hit the bottom.

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*Disclaimer: The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.