Bloomberg predicts a drop in the crypto market in June!
Some experts mention the end of the bear market. Other analysts suggest a potential deterioration of the situation in the crypto market. It may no longer be a time for speculation, but for caution. Bloomberg issues a warning and predicts a depreciation in the price of bitcoin (BTC), ether (ETH), and other cryptocurrencies.
From optimism to concerns
The adoption of the agreement to raise the US debt ceiling by the US House of Representatives and Senate, as well as the possibility of postponing the interest rate hike in June by the Fed, have led to a recovery in the financial markets. And although some analysts are already announcing signs of a bullish season, it won’t happen anytime soon, according to Bloomberg.
The American financial group alerts about a crash in the cryptocurrency market in June. This company specialized in economic information and services for financial market professionals reveals that the US Treasury’s plan to replenish its balance could have a negative impact on the price of the queen of crypto and other cryptos.
The US Treasury has indeed issued approximately one billion dollars in bonds after the debt ceiling agreement and is now depleted.
An imminent drop in the crypto market?
Digital assets such as bitcoin (BTC) and ether (ETH) could suffer from this decision by the Treasury to replenish its coffers, according to Bloomberg. The American group also relies on an analysis by some experts at Citigroup, who predict equally gloomy prospects for crypto.
Analysts anticipate extreme volatility and modest returns. They emphasize that the outflow of US dollars could potentially lead to a recession. Fiona Cincotta, senior analyst at City, highlights the critical support threshold for Bitcoin. According to her, any break below the $25,000 mark would result in a substantial depreciation in the value of this crypto. Fiona Cincotta mentions the possibility that a strategic pivot by the Federal Reserve (Fed) towards a more accommodative direction could reverse the trend and stimulate a market increase.
At the time of writing this article, the price of bitcoin (BTC) is $27,259 and that of ether (ETH) is $1,905. Will this imminent drop predicted by Bloomberg, despite the bullish cycle announced by Alex Krüger and many other analysts, take place? The days or hours to come will tell us.
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