As the cryptocurrency market is going through tough times, experts are warning that the price of Bitcoin (BTC) will lose more momentum.
Fortune magazine draws attention to volatility
A chart from the JP Morgan team shows that Bitcoin is currently tracking the price action of gold. The chart below reveals Bitcoin’s quarterly and half-yearly volatility ratio against gold. in Fortune Magazine cryptocurrency The team did some interesting bitcoin analysis this week. The Fortune team report predicts that the combined market capitalization of Bitcoin and gold could eventually equalize, as they serve the same purpose. However, Bitcoin held by institutional investors will not rise in the near term until volatility stabilizes, according to the report. The Fortune team issued the following statement:
Risk management is an important factor for institutional investors. Since the volatility of Bitcoin is still very high, the amount of Bitcoin in the hands of the institutional investor is unlikely to increase until the volatility subsides. It doesn’t seem possible to track this issue.
Regarding Bitcoin’s short-term price action, the Fortune Magazine team’s report states, BTCIt reveals that. High inflation figures in the United States and European Union countries forced central banks to raise interest rates, which deeply affected stocks and the cryptocurrency market. With further interest rate hikes expected in the medium term, risky assets, including cryptocurrencies, are under tremendous selling pressure. The tech-heavy Nasdaq fell 27% in 2022, while Bitcoin fell 39%. BTChas fallen 58% since hitting all-time highs on November 10 last year.
Experts warn: the decline will continue
While Bitcoin was a disappointment in the spring, crypto investors are wondering where the price of BTC will go in June. Mark Newton, Fundstrat Global Technical Strategist, crypto- He said currency investors should closely follow US stock markets to buy Bitcoin at an affordable price, adding:
If the S&P 500 drops a little more, it will create a great buying opportunity for Bitcoin. We will also see many declines in the coming months.