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Some individuals are losing trust in Bitcoin following last month’s dramatic fall.
Fans of Bitcoin, beware! US-Bookies.com has assigned 8/11 (or 57.9%) odds that the world’s most popular cryptocurrency would fall to $10,000 this year. The price of Bitcoin was that low on October 2, 2020, when it touched $10,416.
Given that in April, US-Bookies.com was offering 4-to-1 chances (or 20% ) that Bitcoin would reach $10,000, today’s odds seems terrible. The enormous move over the last two months suggests rising scepticism about the world’s largest cryptocurrency by market capitalisation.
Bitcoin has been on a historic bull run since October 2020, reaching an all-time high of $64.8k just two months ago. Increasing institutional adoption from Tesla, SkyBridge Capital, and MicroStrategy fueled a speculative frenzy that has subsequently subsided.
Today, Bitcoin has returned to $35.2k after experiencing the greatest drop in its twelve-year history last month. This was partly due to unfavourable news from China—Chinese payment organisations repeated their support for the central bank’s 2017 crypto transaction ban—as well as mounting worries about Bitcoin’s environmental effect. Elon Musk, CEO of Tesla and $1.5 billion Bitcoin HODLer, was the most vocal about his fears.
How finance is betting on Bitcoin.
Futures traders, on the other hand, are not quite as negative. According to Deribit, the current strike price for Bitcoin futures contracts expiring in December 2021—a wager on Bitcoin’s future price—is approximately $37k, indicating that futures traders expect the price to remain around the same.
On June 9, Singaporean crypto investing firm QCP Capital stated that “BTC price looks likely to remain capped until year end.”
The business, which trades Bitcoin futures, went on to say, “We no longer see a fast recovery to $50,000… it’s difficult to make a bullish fundamental argument to buy BTC right now.”
So, bookies are pessimistic, but futures dealers are more optimistic.