Navigating the Turbulent Waters: Current State and Future Predictions of the Cryptocurrency Market

 

Crypto summer. What adventures is cryptocurrency planning for the summer vacation of 2023

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Recently, the cryptocurrency market has been frozen in doubt. Bitcoin (VTC) cannot break through the psychological mark of $30,000, and Ethereum (ETH) is "entangled" in tenets of 10% fluctuations. Although the beginning of the year promised a "stellar time" for the top cryptocurrencies. In particular, the price of bitcoin was steadily rising, showing a 70% increase – from $16,500 in January to $30,000 in April. Why is the crypto market now behaving so uncertainly? Delo.ua decided to find out what problems are currently present in the industry and what to expect from Bitcoin and Ethereum in the summer.

An in-depth analysis of recent developments and expert insights on the challenges and prospects for cryptocurrencies in the summer of 2023.

Dynamics: How the Bitcoin exchange rate changes

The most famous cryptocurrency in the world - bitcoin - began to become cheaper somewhere in the middle of April. According to the website Coinmarketcap, if On April 17, the crypto exchange rate was $30.3 thousand, then on May 16 it fell to $27.24 thousand .

Foreign analysts definitely did not expect this unpleasant surprise, as they believed in the increase in the price of the crypto currency , as previously reported by Delo.ua. Thus, the technical director of Tether (USDT) Paolo Ardoino said that bitcoin can reach a historical record of around $69,000. And the strategy director of the Gemini crypto exchange, Marshall Bird, predicted that bitcoin would rise to $100,000.

Reasons: VTS has reached a psychological point

So what's going on? The mark of $30,000 has become a kind of equilibrium indicator for bitcoin, explains financial analyst Andriy Shevchyshyn.

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"It's a bit higher than the cost of mining, but high enough to keep all miners happy. In any case, it's an area where buyers don't have enough funds to push the market up and hold it if the selloff starts."

Andriy Shevchyshyn is a financial analyst

According to the expert, now in the global world, inflation and the high cost of capital have narrowed the opportunities for venture capital and aggressive investment, and some are even looking for opportunities to exit cash. Therefore, when such an opportunity is presented, investors sell crypto-assets.

Maksym Oryshchak, an analyst at the Center for Exchange Technologies (CBT) , agrees with this , and explains the exchange rate fluctuations of VTS to the lack of significant news from the USA that would provoke volatility in the financial markets.

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"As soon as the US debt ceiling situation is resolved or new contingencies emerge regarding America's monetary policy, we can expect price growth will continue with a target of $36,000. In the summer, we are waiting for a price increase, but there are no ambitions to increase to the level of 70,000 yet," says Maksym Oryshchak.

At the moment, Shevchyshyn also does not believe in the growth of bitcoin to $70 thousand. He believes that in the medium-term horizon the price of the "coin" in the range of $35-40 thousand looks more realistic.

"But in order to start the crypto market, it is necessary to solve the issue of liquidity, i.e., free money, in order to "push" the bitcoin rate to these levels," warns Shevchyshyn.

Predictions: Bitcoin will still go up

In a recent April survey, Finder portal experts concluded that By the end of 2023, Bitcoin will be worth $35,400., and in 2025 this figure will increase to $99.7 thousand. For this forecast, 32 specialists in the crypto industry provided their vision.

In general, the cryptanalysts interviewed by Finder are positive about the future of VTS. So, StandardDAO co-founder Aaron Rafferty believes that people trust Bitcoin because of the "lack of security in banks".

Therefore, GroveToken Limited Chief Operating Officer Carlo Di Clemente is confident that "more and more institutional investors and corporations are accepting Bitcoin as a form of payment."

"Bitcoin has many desirable properties for both institutional and retail investors," emphasizes Tommy Honan, Head of Commercial Operations at Swyftx .

But among the experts there are also those who consider themselves to be crypto-pessimists. In particular, University of Canberra Senior Lecturer John Hawkins says that BTC is a speculative bubble that is about to burst. But when it will happen, it is difficult to predict, the analyst noted.

Schedules: Ethereum Fluctuations

On April 12, an important event for "Ether" took place - the restoration of Shanghai . As previously explained by Delo.ua, this upgrade for the first time since 2020 unlocked more than 17 million "coins", which is about 15% of the total volume of cryptocurrency. But such an update at that time was also risky, because investors could release too much crypto. Then it would break the supply/demand balance and could trigger a fall in the value of "ether".

It's been a month since the Shanghai upgrade and so far the Ethereum to USD rate continues to fluctuate in the 10% range and has generally remained stable. According to Coinmarketcap, if on April 17 the rate was at $2081, then on May 16 it was $1823.

Reasons: The secret to ETH stability

The crypto industry's fears about whether the Shanghai update could collapse the ETH exchange rate were overblown, experts say. In particular, Andrii Shevchyshyn notes that April's optimism was replaced by May's price correction. This trend applies not only to ether, but also to most cryptocurrencies.

"One month after the update, ether price changes are not so significant, although the fluctuations reached 10%. Here, the general market trend and the global situation on the capital market, legislative regulation, and some speculations influenced rather more," the expert explains.

In turn, Maksym Oryshchak says that the Shanghai update was just a pretext for market volatility. The fact is that in the crypto arena there are various factors influencing the mood of traders, investors and businessmen.

"Each event has a priority. As a rule, periodic events are traditionally less important than general market factors. Sentiment, activity of buying ether or withdrawing money depends on the general rules."

Maksym Oryshchak, an analyst at the Central Bank of Ukraine

Maksym Oryshchak identifies two groups of factors that influence the value of ETH :

1 . Increasing pressure from the US may cause demand for cryptoassets to rise or fall.

2. Everyone is watching the dynamics of strengthening the regulation of the crypto market around the world or the increase/decrease in the level of cybercrime .

"As an example, even the fact of the fall of the US banks, which were focused on crypto-assets, did not provoke a new wave of sales of ether, because the US government volunteered to settle the situation," Oryshchak emphasizes.

So, in his opinion, any structurally significant decisions for the crypto market will be secondary to the statistical data from the US.

Forecasts: what to expect from the course of "ether"

Ukrainian analysts give different forecasts of the cryptocurrency exchange rate. Yes, Maksym Oryshchak believes that in the summer, ETH will aim for the mark of $2400 .

"The increase in price by almost 32% will be the result of comments about the potential end of the rate hike period in the USA. That is, it will be a speculative trend," the analyst says.

At the same time, Andrii Shevchyshyn is sure that the global drivers affecting prices are unlikely to change. But the see-saw cannot be avoided, as the regulatory environment in the US and the situation regarding the US national debt ceiling have a strong impact not only on traditional capital markets, but also on the crypto market. In addition, the market will react quite painfully to the regulation of the largest crypto exchanges, for example, Binance.

"In general, we are currently in a market correction that may last several weeks. For ether, it is worth following the levels of $1650 and $1500. If the exchange rate breaks through these indicators, it will be a threatening call that the growth observed since the beginning of the year has stopped ," says Shevchyshyn.

The Dilemma: How Regulation Will Affect ETH

Meanwhile, in the April review, the experts of the Finder portal prepared forecasts according to which at the end of 2023, ETH will reach $2342, and by the end of 2025 the rate will reach $5491.

In general, experts interviewed by Finder are concerned about regulatory pressure in the US as it affects the price of ETH in the short term.

Yes, Seasonal Tokens founder Ruadhan Oh says the Securities and Exchange Commission (SEC) could undermine Ethereum's success in the US.

"The SEC can classify Ethereum as a security because investors are actually betting on the future performance of developers," explains the crypto expert.

So, if the SEC decides to classify ETH as a security and make the rules for its use strict, then as a result, retail investors and institutions may sell off the "coin".

But the process of regulation of the crypto market is optimistically perceived by other Finder experts. Specifically, StandardDAO co-founder Aaron Rafferty says that the Commodity Futures Trading Commission (CTFC) may value the ETH asset as a commodity rather than a security.

“Then expect a significant jump given its current market dominance as the number one payment tier for dapps ,” Rafferty explains.

What problems is the crypto market experiencing - expert assessments

In general, economic events in the world continue to worry crypto investors. Thus, after the fall of the big three banks in the USA - Silvergate Bank, Silicon Valley Bank and Signature Bank, problems also began at First Republic Bank. Recently, the institution became bankrupt, so its assets were purchased by JPMorgan Chase . Now the crisis has reached PacWest Bancorp : shares are falling in price, and customers are withdrawing deposits.

The US crypto market is also going through troubled times. So, Bittrex Inc and several of its "subsidiaries" have filed for bankruptcy in the United States. The company has assets and liabilities of up to $1 billion in each case. However, this situation will not affect Bittrex's global business, the company assures.

All these events provoke the desire of crypto-investors to withdraw money into cash, says Maksym Oryshchak, because the fear of the financially secure part of the population about the future is growing.

"The war in Ukraine, the risks of high inflation, the decrease in income of large companies, the blocking of trade activity for political reasons around the world and the misunderstanding of the future of the world's elites are all reasons for reducing business activity, moving capital into cash, into safes."

Maksym Oryshchak, an analyst at the Central Bank of Ukraine

The current situation causes an increase in volatility in the cryptocurrency market, because the crisis in the capital market is also a crisis for the crypto industry, says Andriy Shevchyshyn.

"The situation with the banking sector is a blow to the capital market and a ricochet to the cryptocurrency market. A daily swing of 10% or the risk of a drawdown of more than 50% for a long period, as it was in 2022, is not exactly what investors are counting on, so they want to return the cash."

Andriy Shevchyshyn is a financial analyst

So Shevchyshyn reminds of two basic rules for investors, which are especially relevant in troubled times :

1. It is worth carefully watching the economic events in the world, especially in the USA.

2. It is necessary to remember that cryptocurrencies are a risky asset that can provide high profits, but carries high risks.

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**Title:** Navigating the Turbulent Waters: Current State and Future Predictions of the Cryptocurrency Market

**Subtitle:** An in-depth analysis of recent developments and expert insights on the challenges and prospects for cryptocurrencies in the summer of 2023.

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**Introduction:**

The cryptocurrency market is currently experiencing a period of uncertainty that has left many investors and experts puzzled. Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have encountered hurdles, with their values oscillating and defying early-year projections. This article delves into the underlying causes of these fluctuations, shedding light on the present issues within the industry and offering a glimpse into what lies ahead for Bitcoin and Ethereum during the upcoming summer months.

**Search Engine Optimization (SEO) Meta Description:**

Explore the dynamics of the cryptocurrency market in 2023, as Bitcoin and Ethereum face unexpected challenges. Learn from experts about the reasons behind the recent price fluctuations and their predictions for the summer season.

**Blogs:**

Tags: cryptocurrency market, Bitcoin, Ethereum, price fluctuations, market analysis, expert insights, future predictions.

Keywords: crypto market, BTC, ETH, price volatility, expert opinions, market challenges, summer predictions.

**Social Media:**

#CryptoMarketAnalysis #BitcoinAndEthereumInsights #PriceFluctuations #SummerPredictions #CryptocurrencyChallenges

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**Conclusion:**

In the face of market volatility and economic uncertainties, the cryptocurrency industry reflects the broader financial landscape's intricacies. The recent fluctuations witnessed in the crypto market are influenced by a myriad of factors, including global economic events and regulatory developments. Experts offer differing views, ranging from cautious optimism to cautious skepticism, making it clear that the crypto landscape remains a dynamic and ever-changing arena.

As investors navigate through these turbulent times, it becomes crucial to stay informed, maintain a keen eye on market trends, and remember that the crypto market, while promising potential rewards, is inherently risky. The road ahead may be uncertain, but it is marked by opportunities for those who approach it with vigilance and strategic planning.

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#CryptoInsights #MarketVolatility #ExpertOpinions #NavigatingUncertainty #CryptocurrencyOpportunities

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