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The first week of July brought a sharp discount on the bitcoin market. The price of the cryptocurrency fell by more than 15% in just a few days, going below $53,000 per coin. The weekly chart illustrates this progressive downward trend.
The next support level for the price of Bitcoin can be considered demand, which we see the level of $42000-40000. These are the prices we had at the end of January this year. If a sell-off is conducted, it will reach this level within two months.
There are several factors behind this sudden discount. First, the German government unexpectedly auctioned 20000 bitcoin, leading to an oversupply in the market. Second, there are growing fears of another wave of oversupply as the Mt.Gox exchange, which collapsed in 2014, is scheduled to begin paying off creditors in July.
Analysts also point to a lack of interest in bitcoin from institutions. Peter Schiff, a well-known critic of cryptocurrencies, says the decline is due to a lack of institutional demand. He believes that if such demand existed, investors would be eager to take advantage of the opportunity and buy Mt.Gox bitcoins at a lower price than on the exchange market. An intraday chart shows bitcoin's steep price declines on July 5, when news of Mt.Gox's sell-off reached a wide audience.
In the context of these developments, it is worth noting the growing popularity of Bitcoin ATMs, which provide an alternative to traditional cryptocurrency exchanges. Bitcoin ATMs, or cryptocurrency ATMs, allow quick and anonymous cash withdrawals in exchange for cryptocurrencies. For investors currently holding crypto assets, Bitcoin ATMs can be an effective way to secure capital and minimize risks associated with price fluctuations on exchanges.
One of the main advantages of Bitcoin ATMs is the ability to make transactions without the need for identity verification, which ensures anonymity. Additionally, the ability to withdraw cash instantly makes them an attractive solution for those who want to quickly and securely convert their digital assets into physical cash.
The current drop in bitcoin prices is part of the natural market correction that usually occurs during the summer. However, it should be remembered that the halving in April of this year, which halved the rate of new bitcoin mining, may also have contributed to the price drop.
The future of bitcoin is uncertain. Some analysts predict further price declines, while others believe the market will soon stabilize and growth will return.
Time will tell what the future holds for bitcoin. Investors should follow the market closely and make investment decisions prudently. Remember that investing in cryptocurrencies involves a lot of risk. Invest only as much money as you can afford to lose.
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