The fall of Bitcoin in the summer of 2024, the reasons and the likelihood of renewed growth

The cryptocurrency market has been in decline since early 2024, and Bitcoin is no exception. Since June 2024, the price of Bitcoin has fallen another 15%, reaching a new low in 18 months.

The current price of the leading cryptocurrency at the moment is only 56,300 US dollars per coin.

Which surprises many, because most cryptocurrency market analysts predicted the price of Bitcoin in 2024 above $100,000.

Therefore, a completely reasonable question arises: Why did the first cryptocurrency fall in price, what caused the record drop, and what are the chances of resuming the upward trend ?

The main reason for the fall of Bitcoin in the summer of 2024 was the increase in supply, and to be more precise, the expectation of the arrival of a large number of bitcoins, which will be received as compensation by clients of the bankrupt exchange Mt. Gox. Some of the coins intended for compensation have already arrived in the cryptocurrency wallets of the victims.

This event was preceded by other large sales, for example, one of the Marathon Digital miners sold 390 coins in May 2024 and announced the imminent sale of even more. In addition, the German authorities have placed large amounts of bitcoins on leading exchange platforms, which increases the likelihood of their sale.

The beginning of the fall also became a signal for the sale of cryptocurrencies by ordinary investors who fear an even greater decline in prices.

What is the likelihood of Bitcoin resuming growth in 2024?

Despite the current decline in the value of the leading cryptocurrency, it can be assumed that in the near future the price of Bitcoin will rise and new highs .

The July fall is very similar to a bearish game, when market makers want to reduce the price and then buy the asset at the best possible price.

We have already observed such a scenario for Bitcoin more than once, and everything again ended with another increase and a new maximum.

If you look at it, in fact, nothing happened that would become an objective reason for such a strong drop in price. Messages about the sale of small amounts of cryptocurrency, which are greatly accelerated by news sites, look funny.

After the price slows down its fall, new purchases of Bitcoin and altcoins will begin by large investors, and then there will be a natural rise in price. This will happen quite soon, so all that remains is to wait for a reversal and a new upward trend.

And in order not to miss the right moment, you can still set pending orders to buy from cryptocurrency brokers - https://time-forex.com/kriptovaluty/brokery-kriptovalut