16.03.202110:51 Forex Analysis & Reviews: Bitcoin is getting cheaper. Who is to blame and what will happen next?

The first cryptocurrency was worth just over $54 thousand at the time of preparation of this material. The most rapid decline in the price of Bitcoin was observed on a critical Monday. But even though the beginning of this week was very stressful for the asset, experts are in no hurry to talk about the downward trend. Since the beginning of spring, BTC has demonstrated its incredible ability to climb rapidly and confidently. It was able to "grow" by 24% only in March.

So, what pushed bitcoin to the abyss after such a steep rise and, moreover, after updating its historical record? Perhaps the most obvious reason for most analysts is yesterday's news from India. The country may become the first major economy in the world to prohibit the possession of any cryptocurrency at the legislative level. The other negative factor that could well trip up bitcoin is unconfirmed information about the transfer of 18 thousand digital assets to the Gemini crypto exchange. Also, a number of experts suggest that this collapse of BTC is caused by an increase in the yield of US government bonds. If this upward trend continues, then a further decline in the coin is not excluded.

Another question justifiably arises amid the unfolding drama: how will this exciting series develop further? Experts' opinions on the immediate and long-term prospects of the first cryptocurrency are expected to diverge in opposite directions.

It is important to note that a number of experts look at the current decline of bitcoin as a strong reversal signal. They believe that in this case, a further decline in the coin should be expected. According to forecasts, the price of BTC may fall below $50 thousand. And if we take into account the medium-term correction, then the figure is called an order of magnitude lower - $ 40 thousand. Of course, this price will be much more attractive for institutional investors entering the market. According to analysts, the most favorable period for buying digital assets will come in mid-spring and last until the autumn "equator." Experts estimate the probability of a further decline in bitcoin at about 30%.

The opposite view is supported by the latest news from the United States. The anti-crisis measures taken to support the economy give reason to believe that the current BTC quotes do not paralyze the interest of buyers. Under such circumstances, there will be an upward trend. And the next historical record (and not in the long term) for the coin may well be $70 thousand.

As for the forecasts for the end of the year, most experts believe that bitcoin will continue to grow. This opinion, for example, is shared by the Canadian investor Kevin O'Leary. He believes that the value of the coin can exceed $100 thousand. The CEO of the Hong Kong cryptocurrency exchange Diginex, Richard Byworth, calls an even bigger figure. According to him, BTC can overcome the mark of $175 thousand by the end of the year.