30.01.202223:29 Forex Analysis & Reviews: Crazy week for the cryptocurrency market: Bitcoin roller coaster, gloomy forecasts of experts and Zuckerberg's disappointment

In the outgoing week, the first cryptocurrency declined to semi-annual lows and soared to high-profile peaks in just a few days.

Recall that on Monday, the value of the BTC for the first time since the summer of last year collapsed to $32,900, and on Wednesday the quotes of the main cryptocurrency soared above the level of $38,900 formed by a large cluster volume. Thus, in just two days bitcoin has grown by more than 18%.

Further, the value of the digital coin declined from the highest marks with a tangible reaction from bears, which indicates the prospects for a drop in the quotes of the main cryptocurrency.

Today, the price of virtual gold balances at $36,100, and its capitalization, according to the world's largest aggregator of data on digital assets CoinGecko, is $686 billion.

The unpredictable behavior of the cryptocurrency market forces experts to make the most unexpected predictions about the future of virtual assets. The creator of the Crypto Mentors project Nikita Semov said that in the near future bitcoin risks collapsing to the level of the lower limit at around $31,500.

Now the BTC is rolling back into the area of the nearest resistances and is trying to get liquidity for further decline. At the same time, the analyst believes that $34,000 and $32,900 may become intermediate price support points for bitcoin. In case of a breakdown and a reverse test of these levels, it will be possible to consider a short.

Today, leading altcoins are confidently adopting the dynamics of the leading crypto asset, so bitcoin's next steps will be decisive for the global virtual asset market.

Another crypto enthusiast and director of macro markets at Fidelity Investments, Jurrien Timmer, is confident that the cryptocurrency market is in the zone of a liquidity storm due to the tangible volatility of the US stock market.

Despite this, the expert is confident in bitcoin's growth against the background of its strong fundamental basis. So, Timmer says that after the end of the period of strong volatility on the US stock exchanges, it is the fundamental factors of the BTC that will push its quotes up. At the same time, the speculative component will go far into the background.

And if in their cautious scenarios for the future, analysts only assume the further behavior of bitcoin, then reliable facts from the present more realistically outline the state and prospects of the digital coin market.

Meta Corporation (formerly Facebook) has announced that it is closing its Libra crypto-currency project due to disapproval from US regulators.

The Libra project was launched in 2019 and became an attempt by Facebook management to develop its own stablecoin - a cryptocurrency whose exchange rate is provided by national currencies or exchange-traded goods.

In 2019, several well-known financial corporations supported Facebook's innovative solution. However, when US regulators did not approve the idea of Facebook, many companies withdrew from the project.

Later, Meta was forced to rename Libra to the Diem Association and reduce its stake in the project to 75%. The issuer of the stablecoin was to be the bank holding company Silvergate Capital Corporation. However, after two years of negotiations with the US Federal Reserve, the corporation received a conclusion that the central bank does not guarantee approval of such activities.

Following this, the Diem project ceased its activities, and its head, American entrepreneur David Marcus, left the Meta company.

In the near future, Diem plans to return funds to investors and is negotiating with investment bankers about the sale of its own assets and intellectual property.