when will the fall stop?

For several days now, the queen of cryptocurrencies has been going through a period of turbulence with fragility around $40,000.

The crypto market lags this week, with Bitcoin struggling to hold above $40,000. Trading just above that line this Thursday, January 25 at 9:30 a.m., the asset remains down 6.5% in one week. The correction continues stronger on the ether side, which loses 13% for the week.

When will this decline stop? That’s the question everyone is asking with all the indicators that seem to be associated with Bitcoin. For weeks, there has been much debate about whether spot bitcoin ETFs will cause bitcoin and cryptocurrency market prices to accelerate, or whether investors will “sell the news.”

Sales trend

Since their arrival on the market on January 10th, we have had the answer in front of our eyes, especially since we have also seen a proliferation of whales, these crypto investors who own huge positions, selling their bitcoins en masse. The point of ETFs, these new financial products, is to be able to play the trend of Bitcoin without actually owning it. So why expose yourself? So the trend is towards selling. But it is this continued decline in the value of Bitcoin that will also lead to a decline in the value of ETFs, thus reducing their interest. So this has a double effect on prices and there is a risk of disappointment in 2024, as JP Morgan predicts.

If we rely on the graphic analysis of Bitcoin, again there is no salvation in front of a rather large zone that is between $34,000 and $37,000. Which gives us, if we take the lower bound, a potential drop of another 15% before gradually stabilizing. We still need to set things straight. Bitcoin is still gaining 73% in one year and almost 17% in 3 months.

But it is clear that this pivotal moment will mark the history of the cryptocurrency queen. As it turns out, his entry into the classical financial sphere is done the hard way.

Antoine Larigaudrie with Pauline Armandet

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