FX.co ★ Bitcoin can grow to $37 thousand by August

On Tuesday, the main cryptocurrency disappointed investors again, dipping to the lowest value in 5 days. The asset price fell below $32 thousand and continued to move sluggishly down this morning.

Another drop in bitcoin occurred against the background of yesterday's publication of data on inflation in the United States. The price increase, which has reached a record level since 2018, may provoke a change in the current course of the US Federal Reserve in the direction of tightening monetary policy. And this is a negative agenda for risky assets, including digital currencies.

At the same time, analysts note that the cryptocurrency market is already very tired of bad news. This is evidenced by the amorphous reaction of the market to the latest unfavorable events for it. Investors, for example, almost ignored the next comments of the Chinese government about cryptocurrencies.

Traders also reacted coolly to the campaign launched by the United Kingdom, Japan, and other countries against the Binance cryptocurrency exchange. The "war" affected only the interests of residents of these states, throwing them problems with replenishing their accounts.

However, the mentioned battles did not affect the affairs of the exchange itself in any way. The dynamics of Binance Coin is proof of this: over the past week, the asset has demonstrated the best performance among the digital currencies in the top 10.

On this basis, some experts believe that the probability of the cancellation of the stimulating policy in the United States, as well as the work initiated by the Fed in the field of regulating the crypto industry, should not exert super-strong pressure on bitcoin and other coins.

This opinion is shared by the head of the Avanti cryptocurrency bank, Caitlin Long. Yesterday, she said that the US regulator is going to complicate access to payment systems and bank accounts for companies whose activities are related to digital assets.

On July 13, the stage of the public opinion poll on the document, the adoption of which was initiated by the Federal Reserve, was completed. This project will determine the principles on the basis of which requests for access to the services of the regulator will be evaluated.

According to the Wall Street veteran, the repression has already begun, but it will not directly affect bitcoin and other assets, but at the same time, of course, intermediaries will suffer.

The expert believes that if the document is adopted, the situation of 4 years ago may repeat, when many crypto companies lost their bank deposits.

The forecast of the head of the ICB Fund investment department, Aaron Chomsky, is also positive. He is confident that in the long term, the digital asset market is waiting for growth, despite the possible tightening of conditions for the crypto industry by the US Federal Reserve.

The expert is also optimistic about the medium-term dynamics of the main virtual coin. According to him, by August, the price of bitcoin can soar to $37 thousand.

The expert concluded that on-chain indicators indicate that the mood of many investors, including those who suffered from the relocation of miners from China, has changed. Traders have switched from selling to accumulating assets, which increases the probability of a bullish trend.

At the same time, Chomsky sees great growth potential in the main competitor of bitcoin. In his opinion, by the end of July, Ethereum is able to reach the $2,500 mark. The launch of the "London" update in the official altcoin network as part of its transition to the 2.0 protocol will serve as a springboard for the asset.