Cryptos fall; Bitcoin, at $30,000, awaits news from BlackRock

There´s been a downturn in the cryptocurrency market. Bitcoin (BTC) has fallen 0.6% in the last 24 hours and manages to maintain the $30,000 level, while Ethereum (ETH) has dropped another 0.6% and fallen to $1,850. The two main cryptos in the market have lost nearly 2% and 6% in the last seven days.

Naeem Aslam, chief investment officer at Zaye Capital Markets, believes the reigning cryptocurrency "is lacking some momentum" after not seeing "any meaningful movement" over the weekend. Meanwhile, Craig Erlam, senior market analyst at OANDA, noted that Bitcoin trading "has remained choppy" and continues in the range in which it has been moving in recent weeks.

"From a technical point of view, we are still in a very narrow consolidation zone around $29,500 and $31,000," commented Javier Molina, senior market analyst at eToro, while stressing that the "decrease in volatility, the exit of short-term investors and a reduced volume does not exceed $5 billion."

On the technical side, the expert added, "if prices are able to break above $31,000, the medium-term structure would change and we would pose a very bullish scenario with the first target at $36,000 and $40,000 as the next benchmark." "However, not being able to overcome $31,000 returns the scenario to the downside whose main support goes through $25,000 if $29,500 is lost first and $28,000 as the second support."

However, most experts agree that optimism is still the predominant sentiment in the market thanks to BlackRock. According to analysts, investors are confident that the world's largest asset manager will get the Securities and Exchange Commission (SEC) to give the go-ahead for its Bitcoin spot exchange-traded fund (ETF).

"Traders know that BlackRock will have its ETF approved, and that means a massive liquidity event for Bitcoin and a decent flow of institutional funds. So, overall, we continue to remain highly positive when it comes to Bitcoin," stressed Aslam, who believes that "the 100K target looks more likely than ever as BlackRock has taken on the role of Chief Marketing Officer."

The truth is that while Bitcoin has managed to set two near-consecutive yearly highs thanks to the stance of BlackRock and its CEO, Larry Fink, not everyone is equally optimistic. Erlam, for example, explained that "there's no guarantee they will yield a positive outcome even if the chances are enhanced by the backing of those involved."

"It could also be a lengthy process which may explain the stall we've seen over the last couple of weeks," the expert added. It is worth noting that in recent sessions the reigning cryptocurrency has corrected downward on the expectation of a tougher-than-expected Federal Reserve (Fed), among other factors.

For its part, from JP Morgan believe that the market's optimism around the BlackRock ETF is excessive, since its approval is not differential for cryptocurrencies in the country. "Spot Bitcoin ETFs have existed for some time outside the US, in Canada and Europe, but have failed to attract the interest of large investors," stated analysts at the largest US bank, who believe that the appearance of these products in the United States "will not change the rules of the game."

In the rest of the market, there have been outstanding drops of 4% for Solana (SOL), Litecoin (LTC) and Tron (TRX).