FX.co ★ Crypto experts predict Bitcoin's leap to $250,000 from $30,000

On Tuesday morning, Bitcoin was trading sideways. At the time of writing, BTC is trading at $31,540. According to the digital asset tracking website CoinMarketCap, over the past 24 hours, Bitcoin reached a low of $30,241 and a high of $31,949.

Yesterday, BTC soared by 6% to $ 30,700. The cost of the asset showed growth for the first time after eight weeks of declines.

Over the past two months, BTC collapsed by 1.6 times to $ 29,000 from $ 45,800. At the same time, since the beginning of May, Bitcoin has lost more than 18%, and since the beginning of spring about 30%.

The cryptocurrency has already lost about 60% since last November when the asset hit an all-time high of $69,000.

Altcoin market

On Tuesday, Ethereum, Bitcoin's main counterpart, also started the session with sideways trading. At the time of writing, the coin has reached $1,997.

As for the top 10 altcoins, the top gainer was Cardano surging by 12.98% over the past 24 hours. At the same time, all other coins from the top 10, except for the Binance USD stablecoin, also reported strong growth.

By the end of last week, Solana was the top loser plummeting by 4.43%, and Cardano was the top gainer soaring by 11.61%.

According to CoinGecko, the world's largest aggregator of virtual asset data, in the last 24 hours, Waves gained 107.9% and topped the list of the top 100 digital assets ranked by market cap, while Terra Luna Classic lost 20.0% and hit the bottom of the list.

Current state of crypto market

This week, the digital currency market is still in a zone of volatility, and traders may breathe out after eight weeks of declines. In recent months, the US stock market and crypto assets have reached a high degree of correlation on the background of institutional involvement, which means the main stimulus for the growth of virtual assets today may be another active increase in the activity of big investors.

Since the beginning of 2022, analysts have increasingly emphasized the high level of correlation between the securities market and virtual assets against the backdrop of tense expectations of both markets about the consequences of the geopolitical conflict in eastern Europe and the further steps of the US Federal Reserve.As evidence of the high correlation between cryptocurrencies and stocks, the April trading results of the flagships of both markets can be cited. Thus, in April, the high-tech indicator NASDAQ Composite lost more than 12%, which was the largest decline since 2008.

At the same time, in April, Bitcoin dropped by 16.2% which was the largest drop since 2011.

Earlier, the experts of the investment company Arcane Research have already stated that the correlation between BTC and technology securities has reached the highest level since July 2020.

At the same time, during the last week of May, there was no correlation between Bitcoin and NASDAQ at all.

Thus, despite the fact that the key US stock indices showed a strong recovery, digital assets refused to adopt their trend and remained stable. Analysts attributed this stability of the crypto market to the lull before the influx of major players.

Preliminary expert scenarios

As for the forecasts of cryptoanalysts about the near future of the crypto-assets market, they often express mixed opinions.

Yesterday, well-known venture capitalist Tim Draper said that BTC may soar above $250,000 if women would use it to pay for their purchases in stores.

The American billionaire believes that if retailers around the world began to accept bitcoin as payment, it could soon reach a new all-time high above $250,000. At the same time, Draper considers women to play a major role in his optimistic plan, because they control about 80% of family expenses, and therefore can pay for cosmetics, clothes, and household goods with bitcoins.

Thus, the investor believes, the benefit of introducing cryptocurrency for retailers will be a worthwhile step, and they need to do it as early as possible. If this scenario comes true, the billionaire believes, BTC could easily replace traditional payment systems in the near future.

However, not all crypto-experts believe in bitcoin's bright future as much as Tim Draper. Earlier, Guggenheim Partners Global Chief Investment Officer Scott Minerd said that in the very near future, Bitcoin may fall below $8,000. The key reason for such pessimistic developments, the expert believes, could be an increase in the base interest rate and a tightening of monetary policy by the US Federal Reserve.

In addition, Minerd called most cryptocurrencies "junk," stating that only Bitcoin and Ethereum were able to survive the crypto winter that had arrived. American entrepreneur Charles Hoskinson also recently stated his confidence in the new crypto wither. Hoskinson is confident that there is no single weighty factor that can trigger the market to rebound.

The popular Bitcoin critic Peter Schiff also made disappointing predictions about the future of the digital asset market, predicting the fall of the first cryptocurrency to $8,000. A significant condition for this could be the recent breakthrough of the level of $30,000, Schiff said.

Earlier, Global Macro Investor CEO Raoul Pal suggested that the outgoing May and approaching June will be the most worrisome months of the year for BTC, which means a new wave of sell-offs in the cryptocurrency market is inevitable.