Bitcoin Price May Fall Below 40,000 Dollars

Cryptocurrency market volatility continues. According to analysts at Wolfe Research, Bitcoin's price could fall below $40,000 by the end of October.

Bitcoin failed to maintain its 200-day moving average, after which its price declined by approximately 20 percent. According to analysts, cryptocurrency has recently followed less closely the growth of technology stocks and other risky assets. In their assessment, Bitcoin has also lost its function as a hedge against inflation, while a portion of free capital is now flowing toward artificial intelligence and semiconductors.

Wolfe Research's forecast is also based on Bitcoin's four-year cycle. According to this model, the decline from the highest price level to the minimum historically reached an average of 79 percent. Therefore, the company believes that pressure on Bitcoin may continue, despite the fact that American stock indices are approaching record levels in recent weeks against the backdrop of technology sector growth.

Source: Investing.com