I know everyone has been riding high on the rising Cryptocurrency prices, but I feel that Bitcoin could slide this June. One of the main factors is the reason the first dip in crypto happened early this year; China. At that time, China put the clamp down on their crypto exchanges by halting business and preventing withdrawals. Below is a chart showing the affect the Chinese actions had on the market.
This dip was just a reaction to China’s actions, what’s going to happen in June could cause much more negative impact beyond reactionary selling. This June, China’s government plans on allowing withdrawals to commence at the exchanges mentioned previous. This, in my opinion, could cause a contraction far worse than the one in early 2017.
The withdrawals from China’s crypto exchanges could cause more market sellers than buyers in a disproportionate ratio; causing the price to fall. Combine that with the reactionary selling based on the sudden downturn, the outlook doesn’t look good for Bitcoin this June (IMO). Moreover, many of the Bitcoins mined in the early days of the currency have been mined and accumulated by a very limited group of people. This group has yet to sell off on a major scale, which is also another factor to consider.
This does not mean an across the board downturn on all cryptocurrencies in June, just most of them for the short term. Those that gain in June’s contraction are the same cryptocurrencies that are or are going to be accepted as legal tender in any given country. Ripple (XRP) went up considerably after Japan legalized crypto as tender, for it has become the crypto of choice among the Japanese people. Ethereum is being discussed as a legal means of tender in the European Union. IMO, these types of cryptocurrencies will be where investors run to in the coming downturn.