Neel Kashkari: Bitcoin is hardly useful for US residents

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Bitcoin has started to fall over the past week after it failed to overcome the level of $47,500, which is the 50% level of the entire drop in the quotes of bitcoin from 65,000 to 29,000 per coin. The last round of growth of the first cryptocurrency in the world still looks very strange and certainly unfounded. Therefore, we continue to expect bitcoin to fall back to the level of $29,700. However, a few weeks ago, only a few people believed that bitcoin would grow to almost $48,000 from the current $30,000-31,000 per coin, but it happened. What happened when the fundamental background remained very weak, and only the comments of Elon Musk, Cathie Wood, and Jack Dorsey could be noted from the positive news. All other news was negative for bitcoin, yet it still rose in price. As we said earlier, the growth of bitcoin was most likely due to the rush of investors and traders to have time to buy as many coins as possible before the US Congress passes new legislation that will seriously tighten the circulation of cryptocurrencies and other digital assets and increase tax pressure on all transactions. At the same time, it can be assumed that the market has already had enough of purchases, so it is ready to get rid of some of the coins as long as the exchange rate remains high.

Meanwhile, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, criticized bitcoin and other cryptocurrencies and called them useless for American citizens. "I was more optimistic about crypto and bitcoin five or six years ago... So far what I've seen is... 95% fraud, hype, noise and confusion," Kashkari said. The president of the Federal Reserve Bank of Minneapolis also said that bitcoin is actively used to finance illegal activities. Kashkari also noted that thousands of "garbage" cryptocurrencies have appeared in recent years, most of which are banal financial pyramids. A little earlier, Kashkari called the Dogecoin cryptocurrency, which is actively supported by Elon Musk, as "a Ponzi scheme".

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Technically, bitcoin continues to be in an upward movement on the daily timeframe and has twice worked out the level of $47,500, which is the minimum of April 26, as well as 50% of the movement from the absolute maximum of the value to the minimum of 2021. The quotes of bitcoin left the side expanding channel, but there was no more confidence in its further growth from this. Before overcoming the level of $47,500, we are again considering the option of falling to $29,700 or lower.

The material has been provided by InstaForex Company - www.instaforex.com

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