It was curious when the long-standing depreciation of the largest cryptocurrency Bitcoin (BTC) would end.
Will the fall continue?
The price of bitcoin fell below $33,000 on Monday, May 9, the lowest level since July 23, 2021. After this fall, a well-known cryptanalyst made a forecast regarding the price of BTC.
Dylan Leclair, head of marketing research at Bitcoin Magazine, senior analyst at UTXO Management and co-founder of 21st Paradigm, said that historically, the decline in the price of bitcoin has not reached what was expected, and the fall will continue to $ 24,300.
On the other hand, according to data published by the Blockchain Glassnode Data Analysis Institute, the BTC hashing rate is currently at a monthly low.
However, it is claimed that the crypto-fear and greed index, known as market sentiment, has reached the level of “extreme fear”.
Why is Bitcoin falling?
In addition to this, the analyst who commented on why bitcoin is currently in a downtrend stated that the main reason for the decline in stocks, along with the high volatility of crypto assets, is the result of the high interest rate policy of central banks aimed at reducing inflation.
In addition to this, the expert analyst, who claims that geopolitical reasons are also effective, added that the fight against another cryptocurrency, Terra (LUNA), last weekend worsened the situation for the crypto assets sector. Continuing his statements, the analyst said that some people are afraid that if things go really bad, they will have to sell part or all of the guard of the Luna Foundation. Finally, the analyst stated that these panic sales could be effective in reducing bitcoin.