While the market is in the stage of correction, analysts are trying to predict the development.
Justin Sun, founder of TRON project and TRX cryptocurrency and BitTorrent CEO, stated on Twitter that he expects the market to recover in the summer months and a new round of growth by the end of the summer. The expert says:
– The bull market, of course, is not over yet. We are in a bull market correction period. June will create a steady trend. July and August will certainly start a new round of the bull market.
Bitcoin price dropped to $30,000 on May 19, then rebounded, but crashed again on May 21. The reason is the statements of Elon Musk’s Tesla and Chinese officials. Tesla refused to sell its cars for bitcoin. And China has banned cryptocurrency transactions for financial institutions. In addition, later Vice Premier of the State Council of the People’s Republic of China Liu He said that it’s time to tighten the regulation of cryptocurrency mining and cryptocurrency trading.
However, Elon Musk considered that in this context it is better to support the cryptocurrency market. So he met with miners from North America, mainly Canadian. At the meeting, the possibility of using renewable energy for mining was discussed. Musk tweeted after discussion:
– Communicated with North American bitcoin miners. They pledged to publish current and planned renewable energy use and ask WW miners to do so. Potentially promising.
To clear the air, standards for reporting energy use in the mining industry will be developed. All these events had a positive impact on the market and bitcoin. BTC returned to about $40K. At the same time, even despite the fall, bitcoin has risen by a third since the beginning of the year.
Perhaps simply publishing real data on the energy used for mining will help the market return to a growth trajectory. It is reported that 60% of mining in North America now comes from hydroelectricity. China also mainly uses cheap hydropower for mining.
The market recovery is also supported by the positive reaction from the US regulator SEC regarding the creation of the bitcoin ETF. Exchange Traded Funds (ETFs) are believed to be at the service of market development, by giving a possibility to invest in an asset without buying it. The SEC has received several applications for the creation of such funds. They are under consideration and a decision is expected by the end of the year.