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Cryptocurrency as an asset class has flourished immensely since its inception. Digital assets are being adopted on a worldwide basis due to the various benefits and advantages that it provides. Cryptocurrencies are also a passive form of income for thousands of individuals in the investment sector. But a lesser-known fact about digital assets is that the domain is quite closely related to inflation and recession. Major cryptocurrencies, especially Bitcoin, are considered an excellent hedge against inflation and that can protect the wealth of the investors who are looking to outgrow adverse economic conditions. Not just inflation or recession, buyers can use cryptocurrencies to outgrow any economic or financial condition. But of all the cryptocurrencies that can be used as a hedge, Bitcoin is the most trustworthy. But there are concerns if BTC will actually, successfully survive this recession period or not. Given that the token is at its most volatile stage right now and its value is constantly declining without any support or resistance, investors and experts are worried about the future prospects of crypto.
Following the end of June, which turned out to be bitcoin's worst trading month in over a decade, the cryptocurrency experienced enhanced volatility by surging from over US$2,000 in minutes to a multi-day high of just under US$21,000. However, this uptick didn't last long, and the asset returned below US$20,000 shortly after. Then came the weekend, which was typically calm, and Bitcoin settled at approximately US$19,000.
Bitcoin has breached a key threshold of briefly hitting US$19,000 before reaching US$19,457.64 and is still down more than 70% from November 2021. The fall in BTC price has caused a liquidity issue in the community of blockchain tech companies across the world. Some crypto professionals are expecting Bitcoin to hit US$10k in the nearby future to start soaring high efficiently and effectively.
The sharp downtrend of the popular cryptocurrency is created by inflation warnings. Bitcoin dove deep into the crypto bloodbath with a massive struggle to be in the US$19k price range for crypto investors. The rapid slide in the BTC price is showing that the US Federal Reserve is still making good progress in controlling the inflation rate for the future. The most popular cryptocurrency has stepped down by over 38% in June for inflation and other economic conditions.
Over the past few weeks, the US$18K level has significantly supported the Bitcoin price. Additionally, the lower boundary of the shown triangle has also supported the price, pushing to break the channel's middle trendline. The price has been rejected after exceeding the mid-trendline of the channel and failing to test the triangle's upper trendline. However, the most recent shakeout may be a pullback to the broken boundary. If Bitcoin successfully forms the pullback, a surge followed by the triangle breakout will be more likely.
Aside from one brief spike to just over US$19,500, the asset spent most of the next three days moving down. It was just when July 4 was coming to its end when the cryptocurrency started to gain traction and jumped to an intraday high of US$20,400 (on Bitstamp). As of now, BTC has lost a few hundred dollars and sits around US$20,000. Its market cap is up to US$385 billion, and its dominance over altcoins is at 42.3%.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
