Analysts suggest bitcoin recovery in the summer of 2021

01-06-2021

The second half of spring was a difficult period for cryptocurrencies, particularly bitcoin. After the main digital coin reached a high of $64,300 in April, Bitcoin’s price began to fall sharply and reached $30,000 in May.

Analysts’ expectations for the summer

Experts suggest the beginning of bitcoin capitalization recovery in the coming months. As a result, the value of BTC will presumably rise up to $50,000 and above. Analysts note a decrease in the volatility of cryptocurrencies in the summer. This gives hope for the absence of sharp movements in the crypto market. 

At the same time, we should not expect bitcoin to update its historical maximum in the near future. Experts are more inclined in favor of Ethereum, which can overtake Bitcoin in terms of speed of recovery. The price of the main digital coin is expected to remain near the $40,000 mark until the end of the summer.

BTC May 2021 (05.2021) exchange rate history
BTC May 2021 (05.2021) exchange rate history

Movement of quotations in a narrow range

The most realistic seems to be the movement of quotations in a narrow range. Some analysts argue that many large investors are adding to their investments amid the decline in bitcoin. This points to a positive outlook for institutional market players. 

“I tried to buy $100 million worth of bitcoin at $6200. It took me two weeks to invest $20 million. I think I invested it all at $6500. I decided that was ridiculous because I could invest that much in gold in two seconds. Like an idiot, I stopped buying. The next thing I knew, bitcoin was trading around $36,000,” recalls billionaire Stanley Druckenmiller of his cryptocurrency investing experience.

The desire of big investors to invest in digital assets at the moment of decrease in the rate is confirmed by the situation in the middle of May 2021. So, when bitcoin’s value fell to $30 thousand, “whales” bought BTC for more than $3 billion.

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