The latest drop in the bitcoin exchange rate is inextricably linked to the negative fundamental background from China, the United States, and some other countries, where the regulation of the cryptocurrency sphere has been tightened. Elon Musk, who either likes or dislikes bitcoin, has once again added fuel to the fire. Therefore, from a fundamental point of view, bitcoin moves very, very logically. When one of the most famous businessmen and investors in the world, Musk, regularly spoke words of support for the first cryptocurrency, it grew and significantly rose. Now, when Musk criticizes bitcoin, it is not surprising that it no longer shows growth. The same applies to news from China or the United States. According to various analytical agencies, at the end of June, about 70% of Chinese mining companies had already turned off their equipment and were preparing to export it to other countries that are more friendly to mining and cryptocurrencies. Thus, the low volatility of bitcoin in recent years is also due to the fact that the number of miners has sharply decreased and the hash rate of the network has fallen. Of course, all this mining equipment (or most of it) will start functioning again sooner or later. But the very fact that the authorities of one of the largest countries in the world (both in size and economy) have launched an open war against bitcoin speaks volumes. And it, of course, does not give a positive example to many investors and traders. Recall that bitcoin is bought not only by uncles in suits with bank accounts worth several billion dollars. Ordinary people, students, and employees who want to invest a little and earn a little are also interested in bitcoin. And the fundamental background has an extremely strong influence on such people. Since they are not professional investors, in the event of a drop in the value of an asset, they try to get rid of it and, of course, there is no talk of new purchases. And some large investors and institutions cannot pull bitcoin out of the swamp.
By the way, all the same, Musk recently criticized bitcoin for being slow. "Bitcoin and Ether use a multi-level transaction system. However, the transaction speed is slow and the cost is high. The advantage of DOGE is that this cryptocurrency maximizes transaction speed at a basic level and minimizes transaction costs with exchanges," the head of Tesla wrote on Twitter.
Technically, bitcoin quotes have settled below the upward trend line on the 4-hour timeframe, and just yesterday it bounced off the Senkou Span B line. Therefore, in the short term, we expect a new fall in bitcoin quotes to the levels of $31,100 and $29,700, which are key for bitcoin. The further fall of the cryptocurrency will entirely depend on the ability of the market to keep the rate above these levels.
