The price of bitcoin has rolled back to the support of $38,000. Ethereum declined to the level of $2,230, and XRP reached 63 cents. The total capitalization of the crypto assets market was $1.49 trillion.
Glassnode analysts believe that the current growth of the first cryptocurrency shows the impact of liquidations on the crypto derivatives market, and in the absence of an improvement in on-chain metrics, it should be treated with caution. At the beginning of the week, the state of the bitcoin options market indicated an imminent surge in volatility, which was eventually realized by a price jump to $40,000. The futures market remains negative, despite a 30% rise in recent days, which was strengthened by the liquidation of short positions. Analysts drew attention to the fact that the cost of financing remained in the zone of negative values. Experts also stressed that the indicator did not fall to the values of the capitulation of 2017, which marked the onset of a downward market, and suggested watching in the coming weeks whether the negative vector of dynamics will change in response to the rise in the price of bitcoin.
Economists of the International Monetary Fund have warned countries against accepting bitcoin as a legal means of payment, pointing out the risks to macroeconomic stability. IMF economists believe that companies will have to spend significant resources on integrating cryptocurrencies instead of focusing on more productive goals. According to economists, the introduction of bitcoin into the economy can cause price fluctuations due to the high level of volatility of the cryptocurrency. Although the technology underlying crypto assets has proven to be extremely reliable, technical failures can still occur. Economists also raised the issue of the environmental problems of bitcoin and other cryptocurrencies.
In our forecast, we expect the Bitcoin price to decline to the levels of 37700, 37500 and 37000 dollars. The cost of Ethereum will fall to the levels of 2200, 2170 and 2150 dollars, and XRP - to the price values of 60, 58 and 55 cents.