On Friday, BTC is approaching the $33K mark.
At the moment of writing, the top cryptocurrency was trading at $32,570, up by 1.75% from the previous closing.
BTC advanced by 2% in a day. The spike came amid support from Elon Musk and a stock market plunge. Analysts consider these two factors to have a short-term impact on the cryptocurrency market. In fact, short-term traders who invested in the digital asset at the highs have already sustained losses. Meanwhile, market players who bet on long-term trading, are now in a better position.
The current rebound in BTC occurred amid an insignificant increase in demand, which indicates the exchange rate instability. At the same time, there is a shortage of both buyers and sellers in the cryptocurrency market.
On Tuesday, a decline in bitcoin's hash rate was recorded as miners went offline. Of course, mining is still profitable, which means that it is just a matter of time before productivity is restored.
Today, many experts question the future of bitcoin. Some of them expect the flagship cryptocurrency to fall to its December 2020 levels, trade at $17–22K and rise again. Others suggest that the world's most popular digital coin will plunge to $15K. Such assumptions are based on BTC's previous performance when it lost around 80%. Experts reckon that the crypto winter of 2018 could repeat. In such a case, BTC could collapse to $10K. However, some expect a bullish bitcoin, claiming that it could soar to $120-160K.