Bitcoin fell on Tuesday amid a new cryptocurrency ban in China. Experts warn of a possible drop in the first cryptocurrency to $ 29,000.
Bitcoin tried to recover on Tuesday, but fell 6% in 2.5 hours after Chinese financial institutions were banned from providing services related to cryptocurrencies.
The corresponding statement was released by three financial regulators overseeing online financial transactions, the payment market and clearing, writes RBC.
Now financial institutions in China are unable to provide services for the storage and management of cryptocurrency, as well as release products related to digital assets. The three regulators said in a joint statement that virtual currencies are “not supported by real value,” their prices are easy to manipulate, and trade contracts are not protected by Chinese law.
Investors withdrew a record $ 98 million from bitcoin-based funds over the past week, according to a new report from CoinShares. “Investors are diversifying their positions by withdrawing assets from bitcoin and converting them to altcoins,” CoinShares said.
Analysts at several Wall Street investment companies expect bitcoin to continue to fall in price in the near future, coinspot writes with reference to Bloomberg. The main cryptocurrency will return to the $ 40 thousand mark.
Experts refer to the unpredictability of Elon Musk’s statements and believe that the businessman’s Twitter posts will keep traditional investors away from the crypto market. Over the past week, the CEO of Tesla and SpaceX has twice provoked a drop in Bitcoin.
The most bearish forecast for BTC was put forward by the strategist of the Cornerstone Macro analytical company Carter Worth. He believes that if the fall resumes, Bitcoin is threatened with a collapse to $ 29,000 (the lows of the end of January).
According to Worth, after that a new phase of growth will start, the result of which will be the renewal of previous highs. Despite the significant depreciation, bitcoin still has a chance of reaching $ 100,000 by the end of this year.
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