Illustration by Mitchell Preffer of Decrypt.
Bitcoin seemed to be on a roll earlier this month, hitting a new all-time high just 10 days ago. It is currently struggling to break above the long-term high of $69,000 set in November 2021. what is happening?
First, selling coins in grayscale is useless. As investors redeemed their shares, the giant fund manager began moving cryptocurrencies into custodians again.
said Todd Thorne, ETF and technical strategist at Strategas Securities. Decryption It said that was likely because “remaining holders were hoping to leave the vehicle for a cheaper ETF.”
According to CoinGecko, the redemptions, along with uncertainty regarding the impact of the upcoming halving, pushed down Bitcoin’s price. The price of the largest digital coin is currently $64,415, down nearly 7% on the week, according to CoinGecko. Bitcoin was recently nearing $74,000.
The situation for Ethereum is not much better either. The second largest coin has fallen 10% in a week and is now worth $3,342.
News of a “voluntary investigation from state authorities that included confidentiality requirements” did no favors for the assets.
Elsewhere, popular meme coins that once again attracted investor interest earlier this month have slumped. The biggest companies experienced the biggest declines. Pepe, Dogwifhat, and Bonk are this week’s biggest losers. Assets decreased by 16%, 21%, and 28%, respectively.
Despite the current market pessimism, some prominent analysts remain confident in the long-term outlook. Global investment firm AllianceBernstein predicted this week that Bitcoin will reach $90,000 by the end of the year.
Meanwhile, a Monday report from Standard Chartered claimed that Ethereum could reach $8,000 by the end of this year and $14,000 by the end of 2025.
Edited by Ryan Ozawa.
