According to a leading foreign exchange expert, Boris Schlossberg, Bitcoin’s recent gains may be short-lived. He announced that the whole rally in crypto is getting old.
Managing director of FX strategy at BK Asset Managemen, Schlossberg, said that we’re very close to perhaps an intermediate-term top. He added that a little bit of a correction is undoubtedly due at this point.
The dominant cryptocurrency in the world, Bitcoin (BTC), declined by 0.54% and traded at $59,354.38 over the past 24 hours. However, the digital currency is still up 11.2% over the past week, which is indicating a recovery. As we all remember, BTC has a lifetime high of $61,683 in March.
Bitcoin’s recent gains started after PayPal Holdings Inc. announcement came. It reported it would allow U.S. customers to use crypto holdings to pay at millions of online merchants worldwide.
Remarkably, PayPal’s move came a day after payments giant Visa Inc reported it would allow payments to be settled directly via cryptocurrency on the Ethereum blockchain.
According to Schlossberg, Bitcoin’s high degree of volatility will likely mean transactions on platforms such as PayPal will be extremely small in comparison to regular currency. However, he considers BTC is a better store of value than the precious metal.
CME Group Inc.’s plan to launch Micro Bitcoin futures contracts could rattle BTC
Schlossberg announced that derivative exchange CME Group Inc.’s plan to launch Micro Bitcoin futures contracts on its platform in early May could rattle bitcoin’s price. Significantly, the Micro Bitcoin futures will be one-tenth the size of one BTC. Schlossberg remarked that Bitcoin topped out the last time CME launched bitcoin futures in late 2017.
Matt Maley, a chief marketing strategist at Miller Tabak, announced if BTC moves to the downside below $52,000, it will give the cryptocurrency its first lower low of the year.
Maley added if Bitcoin breaks over its recent highs of $61,000, it should see another higher. However, he agreed with Schlossberg that BTC will see more big slumps along its way in a very volatile session.