Bitcoin falls below $35,000 again, anticipating “busy weekend”

Bitcoin falls below again, anticipating

The main cryptocurrency does not react and analysts believe that volatility could increase in the next few hours.

Bitcoin fell below the $35,000 lines again this Saturday and, like other digital tokens, was affected when the head of the Bank of Japan, Haruhiko Kuroda, joined the list of central bankers who expressed skepticism about its usefulness in the real world.

“Most of the trade is speculative and volatility is extraordinarily high. It is hardly used as a means of payment,” Kuroda said in almost coincidental statements with his peers at other central banks around the world, the Bloomberg agency noted.

The president of the United States Federal Reserve, Jerome Powell, had said a month ago that cryptocurrencies are simply vehicles for speculation, and similarly, the vice president of the European Central Bank, Luis de Guindos, said that tokens should not be considered real investments.

In this climate, Bitcoin marks a drop in its price of 7% until it breaks the floor of $ 35,000 at some moments of the day, and finally stabilizes at that level in the last hours, although remembering the collapse of the cryptocurrencies last week, traders are bracing for new volatility over the weekend.

“Looking at the unrest in the cryptocurrency market, there is a possibility that we will see another bumpy weekend in trading Bitcoin and other cryptocurrencies,  said Ipek Ozkardeskaya, senior analyst at Swissquote.

Prices rose 10% last Saturday, only to fall 18% the next day.

Regardless, Bitcoin changed little over the week, after a 44% sell-off from the April peak of $63,000.

More generally, the threat of stricter regulation remains a drag on crypto market sentiment.

China and Iran cracked down on Bitcoin mining operations for using too much electricity and there is speculation that US lawmakers may increase financial oversight given the growing market size and intense volatility.

On a technical level, the key marker is $30,000, Ozkardeskaya said, understanding that a break below that level would be “a further affirmation of an extended bear market,” he said.