Yearn.Finance (YFI) has become the most talked-about cryptocurrency of 2020, both due to the 30,000 token supply and miraculously rising price above 1 Bitcoin (BTC).
According to popular analyst Tony Spilotro, if Bitcoin; If it drops the rest of the cryptocurrency market, the DeFi token could drop to $ 15,000 or even below this level.
It Can Affect DeFi
All cryptocurrencies are currently on thin ice, waiting for the wind of Bitcoin and Ethereum. Bitcoin had its longest holding time of strong over $ 10K, but failed to reach a higher peak than the 2019 high. The risk of the Bitcoin price falling is a black cloud hanging over the market, and ultimately this could put all the fire and atmosphere of DeFi (decentralized finance) out.
DeFi tokens are what helped the cryptocurrency market rise from bear market lows and even after the Black Thursday massacre. The growth of these tokens like Yearn.Finance (YFI) easily outpaced other major cryptocurrencies like those mentioned above.
YFI has grown from scratch even more valuable than Bitcoin, the top-ranked cryptocurrency and the most dominant asset in the market. But if the leading cryptocurrency by market cap decides to fall further, it is now at risk of leveling up with Bitcoin.
Bitcoin Pulls Down
Bitcoin price pulls the rest of the crypto market down, including DeFi tokens such as Yearn.Finance. YFI could complement a head and shoulders chart pattern that could drop the price to $ 15K or less. However, according to a crypto analyst, this will only happen “if” Bitcoin goes down.
According to the analyst, the full height of the head part of the structure from neckline to the peak represents a roughly 50% increase. According to the analyst’s statements, if the model is realized, there will be a 50% drop and this will return Yearn.Finance to $ 11,000 per token.