Opinion: Bitcoin (BTC) Stays Sideways Until Late Summer

Opinion: Bitcoin (BTC) Stays Sideways Until Late Summer

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The multidirectional news background does not allow bitcoin to continue to rise but also does not allow it to drop strongly.

This is not the first time that Republican Senator Cynthia M. Lummis has verbally intervened in favor of bitcoin. Earlier, she announced with unfeigned joy that she bought bitcoin at the lows, at a price below $30K. Lammis tweeted:

– I’m excited to buy the #bitcoin dip.

Now the senator from Wyoming states that bitcoin is good protection against devaluation and recommends pension funds to buy cryptocurrencies to diversify portfolios. This will be a good hedge against inflation, which is the result of government spending and issuing new fiat money.

In the United States, it is allowed to use retirement savings for investing in cryptocurrencies since 2014. Lammis has reminded this now, pursuing, perhaps, two goals at once. The first is criticism of the democratic administration activities, which “floods the economy with dollars.” The second is an attempt to keep bitcoin from a crash to save her own investments in BTC.

Lummis’ statement, for example, could neutralize JPMorgan’s data that institutionals have lost interest in bitcoin. According to Nikolaos Panigirtzoglou, the bank’s strategist, institutionals began to buy less cryptocurrency after bitcoin set a historic high above $64K in mid-April, and stopped investing totally on June 22 when the BTC price dropped to $30K. Panigirtzoglu also notes that after bitcoin ATH was reached institutionals started to shift to altcoins, but they did not withdraw money from crypto market.

The weakening of institutional interest in BTC is also confirmed by the analytical company Glassnode. This information is negative for bitcoin, but not for the entire cryptocurrency market. However, the crypto community is still discussing the possibility of “crypto winter”, that is, a major drop in the market.

The term “crypto winter” was launched when bitcoin crashed 84% in 2018-2019, from $20K to $3200. Now the drop of the first cryptocurrency is not so significant and can be considered a correction. For the month from May 19 to June 20, bitcoin was in the $34K- $40K corridor, after which it went down into the $30K- $36K corridor. Analysts consider it unlikely that another step down to the $25K- $30K corridor will occur since trading volumes have remained stable for a month, about $35 – $40 billion.

Jason Urban, an expert at the cryptocurrency company Galaxy Digital, believes that by the end of the summer it is hard to expect the rise of bitcoin, it will be sideways. Institutionals are still being stopped by legal uncertainty in the crypto market. But in the fall, the situation will change, and BTC will update its all-time high above $70K.