The Founder of Sublime Traders, Andrei Stanciulescu, said that the short-term trend for Bitcoin continues to decline and its price will probably reach the $ 80,000 mark by the end of the year. However, all cryptocurrencies need someone like Elon Musk to stimulate the coin to confirm the price increase.
Throughout the previous month, the price structure of the consolidation has been driven by a number of factors putting pressure on Bitcoin, most notably China's tightening of capital controls on cryptocurrencies.
CNBC's Jim Cramer said he had decided to sell almost all of his Bitcoin when it hit a two-week low on Monday, explaining that he was worried about a crackdown on cryptocurrency mining in China and ransomware attacks.
The week started with another Bitcoin sell-off. The main cryptocurrency approached the level of $ 30,000.
According to media reports, the price drop occurred over the weekend, when the fight against cryptocurrency in China spread to the southwestern province of Sichuan.
It can be recalled that Reuters quoted a notice last Friday issued by the Sichuan Energy Bureau and the Sichuan Development and Reform Commission. It says 26 cryptocurrency mining operations will be closed by Sunday.
Over the weekend, China's state-run Global Times news agency also published a report saying that more than 90% of China's bitcoin mining capacity will be shut down soon because local regulators are taking similar measures as in Sichuan Province.
In connection to these statements, the People's Bank of China announced that it has called on major banks and Alipay – a payment system operated by Ant Group, a subsidiary of Alibaba, to take tough measures against cryptocurrency trading.
In response to China's new restrictions, CEO of MicroStrategy Michael Taylor noted that the current situation is a tragedy for China, but a benefit for the whole world in the long term.
Adding to the news, MicroStrategy announced on Monday that it had bought another 13,005 bitcoins, bringing the total to more than 100,000 tokens worth more than $ 3 billion.
Cramer also questioned why the price of bitcoin is falling with such a reduction in cryptocurrency mining, emphasizing that if gold mining is reduced, the price of the precious metal will rise.
It is worth noting that back in March, Cramer advised diversifying the distribution of 10% in favor of gold with a distribution of 5% gold and 5% bitcoin.
He added that he invested $ 500,000 in bitcoin at some point in 2020, revealing that Morgan Creek Digital Assets Co-Founder Anthony Pompliano convinced him of the right investment. This, in turn, made him a lot of money.
But in mid-April, Cramer revealed that he had cut his Bitcoin position to pay off his mortgage. At the time, the cryptocurrency was trading near its all-time highs, exceeding $ 64,000.
He compared this income to fabulously fake money, which is paid for real money. But at the same time, the TV personality and CNBC host was satisfied with the payment of his mortgage loan.
