After falling in the first half of the year, bitcoin rose to $ 28,000

Bitcoin rises to $28,000 after falling 09 / 07 / 22 William Hunter Visitors: 501 Rating: ★★★★★

According to CoinGecko, on Thursday, which ended June, the cryptocurrency was trading at US$19,884 until midnight, while at the beginning of the quarter (April 2022) it was about US$45,000. This represents a loss of 56.2%, according to the cryptanalysis of the Coinglass platform.

Despite this, experts have overturned their forecasts that the situation may change by the end of this year, with good results for the crypto asset. Read more news about cryptocurrencies.

This is the case with Deutsche Bank analysts in Germany, who predicted on Friday that bitcoin will recover to $28,000 by December 2022.

A report by analysts Marion Laboure and Galina Pozdnyakova suggests that the cryptocurrency markets reflect the movements of the Nasdaq 100 and S&P 500 since the end of 2021.

The authors of the study believe that " the S & P will recover to January levels and that bitcoin's correlation with the index could lead to a 30% increase in the value of current levels by mid-2022. This will lead to the fact that the coin will return to the $28,000 mark,” the Cointelegraph article says.

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The note also highlights the relatively healthy volume of venture capital investments in cryptocurrency companies over the past two months in the amount of $5 billion, which is $3.4 billion more than in the same period in 2021.

Despite this, there is also mention of risks, such as the recent collapse of the Terra ecosystem and the Celsius fiasco. "The stabilization of token prices is difficult because there are no common valuation models, such as public capital systems. In addition, the cryptocurrency market is highly fragmented. Crypto-free fall may continue due to the complexity of the system,” experts say.

The period of recessions

The sharpest drop in bitcoin prices has been observed since the third quarter of 2011, when it fell from US$15.40 to US$5.03, "a loss of more than 67% and worse than the bear markets of 2014 and 2018, when the price declined by 39.7% and 49.7% in the worst quarters, respectively," according to an analysis by Cointelegraph.

In the last quarter of 2021, there were eight consecutive weeks in the red for bitcoin, and in the month of June there was a decline of more than 37%. “This was the biggest monthly loss since September 2011, when the price fell by more than 38.5% in a month.”

These results have led to a massive wave of layoffs at crypto-active companies such as Gemini, and BlockFi, and most recently at Bitpanda, where the number of employees has decreased by about 277 full-time and part-time.

Finally, the specialized environment says that "cryptocurrencies are closely linked to the technology sector as a whole, and the Nasdaq Composite High Tech index fell by almost 22.5% in the second quarter.


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