The price of bitcoin is struggling to find a direction. For days, it has been hovering around the symbolic mark of 20,000 dollars. Global Economy Recession Prospects Are Testing Crypto Entrepreneur Morale, Experts Say
As midday approached on Wednesday, the queen of virtual currencies traded around 20,200 dollars on the Luxembourg platform Bitstamp, almost stable compared to its level a week ago. During this time, the price moved in a range between 18,600 and 20,900 dollars.
The market is rather pessimistic regarding the future evolution of the benchmark cryptocurrency. Analysis by investment company CoinShares, which specializes in this asset class, reveals that the flow of capital into ‘Short Bitcoin ETFs’ (investment products betting on depreciation) has reached an all-time high.
In the past week alone, some $51 million has been invested in such vehicles, which suggests, according to market observers, that institutional investors do not believe in a rapid recovery in the price. In the short term, we must therefore expect to see volatility and uncertainty persist, we hear in crypto circles.
Bitcoin’s main rivals were faring better than their ‘big brother’ following taking even more of a beating than the latter in recent weeks. This is particularly the case of solana, used for new applications in the field of decentralized finance (DeFi) or non-fungible tokens (NFT), which shows a 2% increase weekly.
The share of the major cryptocurrency has also eroded. While in mid-June, it still amounted to more than 48%, it currently represents only 43%.
According to the specialized site CoinGecko, the market value of all cryptocurrencies amounts to 942 billion dollars, 4 billion less than a week earlier.
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