Published: May 25, 2021
MOSCOW, May 25 (Sputnik), Jonathan Rowson – Bitcoin and other cryptocurrencies such as ethereum are poised to rally back following a week-long price correction that saw nearly $1 trillion of digital assets wiped off the market, experts told Sputnik.
Fears over tightening Chinese legislation against unregulated cryptocurrencies, as well as some ill-timed comments by Tesla CEO Elon Musk, resulted in a turbulent week for many traders.
Bitcoin, the world’s most popular digital asset, fell 30% to near $30,000 at one point during a wild day’s trading this past Wednesday on the back of news that China is set to ban financial institutions and payment firms from providing services linked to cryptocurrencies.
Speakers
Jeremy Cheah, an associate professor of crypto-finance and digital investment at the UK’s Nottingham Trent University.
“The decision by the Chinese government is very significant. About 70 percent of bitcoin mining is taking place in China. Hence, clamping down these mines could potentially cripple the network to a large extent and the last person without the dancing chair would be the ultimate loser,” Cheah said.
Ruud Feltkamp, the CEO at crypto trading bot Cryptohopper.
“Now in 2021, the crypto market is more vital than ever before. China’s latest ban will, of course, have a negative effect, but I believe the genie is out of the bottle. China is fully aware of this and this explains why it is extensively testing with a CDBC (‘crypto yuan’),” Feltkamp remarked.
Jeremy Britton, the chief financial officer at US-based Boston Trading Co.
“Crypto prices dropped swiftly due to China’s (fifteenth) ban, and some ill-informed comments from Elon Musk. Crypto has now bounced back as Musk discovered he was wrong, and nobody cares what China bans,” Britton said.
Marie Tatibouet, chief marketing officer at blockchain asset exchange platform Gate.io.
“In the short-term, I expect the bitcoin price to drop further to $30,000. I feel that this Monday’s recovery is a bull trap. Following this drop, the bitcoin price will jump up again to newer heights,” Tatibouet said.
Yves Renno, head of trading at digital payments platform Wirex
“Technically, the market should hold the $36,000 to $37,000 levels in the very short term, and it’s hoped that China’s decision may not have a long-term impact as China was already perceived as crypto-unfriendly,” Renno said.
Jonathan Rowson 