Bitcoin’s decline: Experts issue warnings with analysis
BTC price drops to $60,800 with a weekly loss of 15%
The decline in Bitcoin continues as this morning’s transactions witnessed a slump to $60,800 as of 9:00 a.m. Turkish Time.
Following these attempts to stabilize above $61,000 are notable amid subsequent buying reactions.
While today's decline appears less severe than yesterday's, Bitcoin's weekly loss is nearing 15%. However, Bitcoin still appears to maintain a premium of around 17% monthly.
All eyes in the BTC sphere are now on the decisions of the FED and the approaching HALVING.
Why is Bitcoin falling?
Cryptocurrency expert Beste Naz Sullu noted that there isn’t an exodus from BTC; profit-taking is occurring following rapid ascents.
"Sales are coming from the Grayscale fund. Also, there's about a month left until the expectation of HALVING in Bitcoin. Due to the reduction in miners' rewards, they are also taking profit to renew their BTC production lines according to new technology. This process could continue for 1-2 months after HALVING."
FED Decision and BTC Commentary
Sullu emphasized the significance of the FED's expected interest rate cuts this year for crypto markets.
"There are currently expectations for three interest rate cuts.
If Powell speaks more clearly about June after the March meeting, cryptocurrencies could turn around. Despite the recent downturn, money is still flowing into BTC. In the last week alone, the inflow amounted to $2.89 billion. Monthly inflows remain at $5.4 billion, and since the beginning of the year, there has been a total inflow of $12.86 billion.
How far could the BTC decline go?
Looking ahead, Beste Naz Süllü highlighted the critical support level of $58,000 for BTC.
"The healthiest scenario is for BTC to touch the $58,000 support and then attempt to consolidate around $60,000 again. Investors need to remain calm."
Analysts suggest positions can be maintained as long as there is no downward movement below the $58,000 level. Focus should remain on long-term expectations, referencing the 50-day moving average.
Allocate a Maximum of 5% of the Portfolio
Tufan Deriner, Managing Partner of Istanbul Portfolio, reminded us that investment in cryptocurrencies is also growing with the advancement of technology.
"Regulations are being sought in crypto markets, and stock exchange-traded funds can now invest here as well. However, we cannot measure a cryptocurrency's real value – we cannot evaluate it like a company's stock. Therefore, price fluctuations can occur very sharply.
Due to the global context, investors can perhaps allocate around 5% of their portfolios here."
Source: Newsroom
