Bitcoin has been in a downtrend since November, so the current move is simply a logical continuation. So the news about the fall in the value of the cryptocurrency, which the day before for the first time since August 2021 fell below the level of $ 40, commented to Izvestia the head of the investment department of ICB Fund Aaron Chomsky.
According to him, the situation for bitcoin buyers is developing badly: quotes are aimed at the level of $ 30 thousand.
“It should be understood that searching for news reasons in the cryptocurrency market is a waste of time, since there is only supply and demand, and this is reflected only in the price chart. Moreover, the market is manipulative both due to its size and due to the lack of an adequate level of regulation, ”the expert said.
Chomsky noted that focusing on inflated news feeds can only lead to negative consequences.
“An example is a mishandled launch [в США] bitcoin-ETF (exchange-traded fund. – Ed.), after which the market began to fall. The “largest network update” since 2017 – Taproot didn’t help either, ”he recalled.
The expert compared buying on such price drops to catching falling knives.
“For further upward movement, quotes need to execute prices below, and this is a drop below the September marks, from where the fall price rise began,” Chomsky explained.
Earlier that day, the value of bitcoin for the first time since August 2021 fell below the level of $ 40 thousand.The cryptocurrency during the trading session lost 3.93% and dropped to $ 39.92 thousand.
Prior to that, on December 20, Chomsky told Izvestia that investing in cryptocurrencies is now much safer than 2-3 years ago, since the market has matured: large players from traditional finance have come to it, new investment instruments have appeared, and an understandable infrastructure has been created.
Chomsky advised novice investors to start with already “well-established cryptocurrencies, acquiring them in shares of the available capital as prices decline.” Only after gaining practical experience should one proceed to more risky speculations, the specialist concluded.