- Bitcoin (BTC) is seeing a consistent resilience amid an erratic market.
- Speculations and projects are bullish and BRC-20 Tokens may play a key role.
The fast-paced price rally of the largest cryptocurrency by market capitalization Bitcoin (BTC) which began at the beginning of the year, seems to have experienced a stall in May. It has now progressed into the first month of the last half of the year with new realities. On Thursday, June 1st, crypto prices moved slightly into the red zone and BTC was not left out of the sad reality.
In all of May, BTC price plunged by more than 4% to break a four-month streak of gains, and this same downward trend was experienced on June 1st. At the beginning of the price rally in January, the largest crypto asset recovered from the $15,000 price mark it had fallen to following the implosion of the FTX exchange.
Between January and mid-April, the price soared reasonably by about 60%, reaching $31,000. This uptrend in crypto prices at the time was attributed to the failure of the United States banking system which led to the collapse of three banks and raised concerns about traditional finance. Bitcoin and many other digital assets became a preferred alternative for investors after gold and bonds.
Bitcoin Reaches Accumulation Phase
BTC is currently trading at $27,140.38, showing more than a 1% gain in the last 24 hours. Amidst all these, Bob Baxley, the CTO of DeFi infrastructure platform Maverick Protocol, declared that the coin and many other cryptocurrencies are in an “accumulation phase” where investors are somewhat hesitant. This comes after Asia opened the market on Friday and BRC-20 tokens reached a $500 million market cap.
The moving averages are pointing to neutral or perhaps a little more bullish, suggesting that we are in the process of building another foundation for another leg upwards,
He stated this while also citing that markets had already priced in potential U.S. central bank rate hikes. In the past, this has shaken prices. Also, he acknowledged that liquidity is all that matters in this age and time.
Markedly, the crypto market has seen a slight decline in recent months and may have to reckon with a U.S. Treasury having to replenish its general account, according to Baxley.
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There is a possibility that this could drain liquidity from digital asset investments. Hence, the amount of careful effort put into the replenishing process by the U.S. Treasury will play a pivotal role in what happens in the coming weeks. In the meantime, investors seem to be cautious about where they plunge their assets.
Meanwhile, Director of Global Macro at Fidelity Investments Jurrien Timmer has predicted that BTC will reach $100,000 by the end of this year and interestingly, $1 billion by 2038. Some of the major fundamentals behind Bitcoin is the advent of the BRC-20 standard and provided their activities remain consistent, BTC may likely breach the $30,000 mark before the $25,000 support level.