Cryptos are still lethargic; "Bitcoin seems vulnerable to further falls"

Slight rebound in the cryptocurrency market. Bitcoin (BTC) rises moderately above $30,1000, while Ethereum (ETH) drops a little and threatens the $1,900 level.

While the reigning cryptocurrency has climbed back above $30,000 after a week of hesitation, Craig Erlam, senior market analyst at OANDA, noted that BTC "looks vulnerable to another dip below." "Broadly speaking, the cryptocurrency has been range-bound over the last month but it has drifted toward the lower end of this and the move below $30,000 yesterday may have made some nervous," he explained.

"If we do see a significant break lower, the next key area of support may be found around $28,000," Erlam added.

This same idea is defended by Naeem Aslam, chief investment officer of Zaye Capital Markets. Nevertheless, the expert is puzzled by the difficulties Bitcoin is going through "despite the fact that every day we get really positive news for the sector." "For instance, if we pay attention to Tesla’s earnings yesterday, the company is Hodling, it is not in the mood to sell Bitcoin, and Elon Musk didn’t say anything negative about Bitcoin either," he explained. The electric automaker, which sold a good portion of its Bitcoin holdings in 2021, continues to neither sell nor buy BTC and its position remains valued at $184 million.

"In terms of the price action, we should see serious momentum coming in terms of the Bitcoin price, and the price should begin to trade above 35K," Aslam commented, and he added that "the overall narrative continues to become much stronger as the SEC has added a large number of Bitcoin spot EFT applications to its register, which means that it is likely to approve all of them in just one go."

However, not everyone thinks so. Edward Moya, senior market analyst at OANDA, believes the current range in which Bitcoin is trading will hold "until we have a major headline"... and this could be a long time coming, if the pace at which the SEC is moving is anything to go by.

"The institutional money is not buying right now and retail is struggling with the current macro backdrop. ​Bitcoin seems poised to be stuck in a range, which could warrant a slightly further dip towards the $29,500 level," stated Moya.

Among the day's important news, it is worth noting that U.S. Democratic presidential candidate Robert F. Kennedy Jr. has suggested that he may back the dollar with Bitcoin if elected president.

"My plan would be to start very, very small, perhaps 1% of issued T-bills would be backed by hard currency, by gold, silver platinum or Bitcoin," explained Kennedy Jr. For Moya,"backing dollars and U.S. debt obligations with hard assets could help restore strength back to the dollar, rein in inflation and usher in a new era of American financial stability, peace and prosperity."

"Kennedy’s stance on crypto does not seem like it will be adopted by most presidential candidates, but it does open the debate going forward. Every commitment by any key official is a positive step for further crypto adoption," the expert added.

The candidate has also come under fire in recent days for various racist comments in which he claimed that Asians and Jews are immune to Covid-19 because the disease was genetically engineered to attack the Caucasian and black population. "The claim is deeply offensive and incredibly dangerous. Every aspect of these comments reflects some of the most abhorrent anti-Semitic conspiracy theories throughout history and contributes to today's dangerous rise in anti-Semitism," stated Karine Jean-Pierre, White House press secretary.

As for the rest of the altcoins, Ripple (XRP) continues to soar and consolidate its position as the third largest crypt' after the partial victory over the SEC in court. Other tokens such as Cardano (ADA) and Solana (SOL) are also rising strongly.