The latest crypto slump could be attributed to multiple factors, with macroeconomic factors also assuming a big role, while analysts remain hopeful.
Bitcoin saw a sudden selling spree in the last 24 hours, dipping below $29000. Investors and traders may have undergone a panic selling session. Most crypto tokens also lost value, while the crypto market cap held steady with only a 1.67% decline. The crypto slump could continue for some time, said experts.
On the other hand, several analysts pointed towards a buying opportunity for bulls. Some even went on to point towards a $150,000 target for BTC by 2024 end. Investment research firm Fundstrat was bullish on Bitcoin.
Tom Lee, its Head of Research, said, “If the spot Bitcoin (ETF) gets approved, I think the demand will be greater than the daily supply of Bitcoin, so the clearing price […] is over $150,000, it could even be like $180,000.”
The spot Bitcoin ETF applications in the US have generated huge potential for the crypto market. As Lee claimed, the ETFs could help increase the capital inflow of the crypto market. The first spot Bitcoin ETF for the European Union has already debuted in Amsterdam.
BTC/USD 1D price chart
Bitcoin is currently trading at around $28500 on August 17, 2023, with BTC/USD trading lower by 2.1% in the last 24 hours. BTC/USD is trading lower than its 20-day EMA (29,290.29) as BTC’s 24-hour volume increased to around $16 billion. Bitcoin has seen around 72.45% returns on a year-to-date basis.