Bitcoin (BTC), the largest cryptocurrency, recently dropped below $28,000 on Coinbase. So what’s next? Here is BTC’s latest price action and various analysts’ price expectations for BTC…
Bitcoin price drops below $28,000: Is it because of Coinbase?
The largest cryptocurrency by market capitalization continued its two-day decline, while Bitcoin briefly fell below $28,000 on Thursday. Bitcoin (BTC) was trading around $28,172, down 2.7 percent in the last 24 hours. However, according to TradingView data, the BTC/USD trading pair on the Coinbase exchange dropped to $27,991 shortly before the US stock markets closed, but later recovered. Edward Moya, senior market analyst at foreign exchange market maker Oanda, noted that Bitcoin’s latest plunge comes after Coinbase CEO Brian Armstrong stated that the crypto exchange giant may leave the United States.
Moya pointed out that Coinbase has managed to obtain a license to operate in Bermuda as part of their global breakthrough. Moya said, “If Coinbase leaves the US market, many US traders will likely disappear as they do not feel safe trading on decentralized exchanges, meaning the global crypto market will shrink significantly. “Bitcoin will struggle here until we get any regulatory clarity, which means prices seem poised to drop,” he says. Craig Erlam, an analyst at Oanda, said in a note on Thursday that the recovery may not be robust, despite Bitcoin’s rise since the beginning of the year.
Analyst: There is a short-term bearish signal for Bitcoin
On the other hand, according to Laurent Kssis, crypto trading advisor at CEC Capital, the 20-day moving average offers a short-term outlook and could allow investors to trigger more selling pressure. Kssis said, “The 20-day moving average has less lag and follows Bitcoin more closely. In our view, this indicates a correction in the market that can be highlighted.”
Bitcoin’s 20-day moving averageThe drop comes a day after a large Bitcoin sell order on crypto exchange Binance and an unexpectedly high UK March inflation figure of over 10 percent. Sheraz Ahmed, managing partner of Storm Partners, said, “This pullback does not look positive. However, looking at Bitcoin’s annual chart, it is clear that we are witnessing a period of extraordinary growth as the industry recovers from the setbacks of the past few years. “We may be witnessing the beginning of a delayed but generally healthy correction, which should encourage further accumulation.”
Altcoins and stocks also lost value
Ethereum (ETH), the second-largest cryptocurrency by market cap, dropped by about one percent in the past day, changing hands at around $1,948. As we reported on Kriptokoin.com, ETH fell to $ 1,917 at one point, reaching its lowest level in a week. BTC and ETH have dropped 7 and 3 percent respectively in the last seven days. Payment-focused cryptocurrencies XRP and Litecoin (LTC) have recently dropped over 5 percent, while most other major tokens were trading in the red.
But there are also important developments for Ethereum. Ethereum Name Service (ENS) announced on Thursday that it has teamed up with MoonPay, a Web3 payments firm, to create a fiat launcher for users looking to purchase .eth domains. Nick Johnson, founder and lead developer of ENS, said, “The goal of the integration is to provide a solution that breaks this barrier by allowing users to use their familiar payment options like Apple Pay and Google Pay. “By making it as user-friendly as possible, this partnership will increase mainstream adoption of not only decentralized financial applications but also Web3 as a whole.”
Equity markets also slumped, driven by disappointing first-quarter earnings, including automaker Tesla and Blackstone, the world’s largest alternative asset manager, whose revenues fell just short of consensus estimates. The S&P 500 and the Nasdaq Composite fell 0.6 percent and 0.8 percent, respectively, on the day. The Dow Jones Industrial Average (DJIA) fell 0.3 percent.
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