'100,000 Dollars vs 20,000 Dollars' Bitcoin, Mixed Reactions to Collapse Below 30,000 Dollars

Bitcoin Bulls Predict $100,000, Bears Expect $20,000
After Breaking Below $30,000, Buy-the-Dip Inflows Lead to Recovery at $33,000
Bitcoin Price Recovers Faster Compared to Altcoins

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Baek Jong-min] The cryptocurrency Bitcoin's price fell below $30,000 during the trading session. Although Bitcoin's price has dropped more than 50% from its peak and returned to the level seen at the beginning of the year, there are contrasting claims that it could still soar to $100,000 or fall to $20,000.

Altcoins, excluding Bitcoin, are showing slower recovery from their declines, and a price differentiation phenomenon between Bitcoin and other cryptocurrencies is expected in the future.

According to CoinMarketCap, as of 3:50 PM local time on the 22nd, Bitcoin was trading at around $32,550, up 0.27% compared to 24 hours earlier. During the session, Bitcoin even rose to $33,200.

This upward trend contrasts with the earlier collapse below $30,000 in the morning. Bitcoin formed a low point around 10 AM, trading at $28,889, down 12.46%.

The attempt to rebound in Bitcoin is interpreted as being due to the inflow of bottom-fishing buying interest that was not seen until the collapse below $30,000 from the $34,000 range.

On this day, Bitcoin's price fell below $29,026, the level recorded at the end of last year. It temporarily gave back all the gains recorded this year.

Bitcoin had risen close to $65,000 in April but showed a 54% decline from its peak within two months.

Bitcoin is testing the $30,000 support level amid a series of Chinese regulatory blows including mining and trading bans, but experts are divided between those who weigh more on further declines and those who expect a rebound attempt.

Mike Novogratz, CEO of Galaxy Digital and a Bitcoin bull, said in an interview with CNBC that he expects further declines in Bitcoin, stating, "The next resistance will be $25,000, but I am not too worried."

Novogratz added, "Despite the sharp price drop, the infrastructure of the cryptocurrency market is maturing. Hedge fund managers, pension funds, and banks are also entering the cryptocurrency market," showing continued faith in Bitcoin.

Katie Stockton, founder of Fairlead Strategies, argued, "Cryptocurrency liquidity is natural. It has been so in the past and is just passing noise."

Thomas Lee, an analyst at Fundstrat and a Bitcoin bull, made even more aggressive remarks. He still claims that Bitcoin can reach $100,000 within this year.

In an interview with CNBC, Lee said the Bitcoin price drop is a tremendous buying opportunity, adding, "The mining ban in China that caused this crash will have a positive impact in the long term." He explained that Bitcoin's 50% correction was relatively resilient compared to past downtrends.

On the other hand, Matt Maley, Chief Market Strategist at Miller Tabak Asset Management, told Bloomberg News, "With the $30,000 level broken, many market participants will throw in the towel," predicting an inevitable short-term downtrend.

Scott Minerd, Chief Investment Officer at Guggenheim Partners, also predicted on Twitter, "Bitcoin could fall to $20,000 as its support level has collapsed."

Altcoin Rebound Slower Compared to Bitcoin

Despite the sharp decline, Bitcoin's share of the overall cryptocurrency market has actually increased.

According to CoinDesk, Bitcoin's share of the total cryptocurrency market capitalization reached 47%, the highest in a month.

Bitcoin's market cap share had steadily fallen from 69% in January to 39.6% on May 16, but in this recent crash, altcoins and other small coins experienced larger declines, reversing the situation.

On this day, Ethereum and Dogecoin also showed weakness compared to Bitcoin, dropping 8% and 16% respectively compared to 24 hours earlier during the session.

Dogecoin, which surged with the support of Tesla CEO Elon Musk, has fallen from a peak of 71 cents to 18 cents, a decline of 70% from its high.

Ethereum, the second-largest cryptocurrency by market cap that once challenged Bitcoin's position, also plunged from a peak of $4,300 to $1,800, showing a steeper decline than Bitcoin.

Ethereum is attempting to recover to $1,900, and Dogecoin is trading at 18.75 cents, but their recovery is slower compared to Bitcoin.

Matthew Deep, co-founder of Deep Stack Funds, predicted that Bitcoin's market dominance will expand again due to this crash. In an interview with CoinDesk, Deep explained, "The best cryptocurrency investment strategy now is to hold Bitcoin and sell altcoins."

He added, "Even if the market declines, Bitcoin's drop will be less than that of altcoins, and when the market recovers, Bitcoin will recover faster than altcoins," he forecasted.

This content was produced with the assistance of AI translation services.