Bitcoin may soon drop to $10,000, according to economists and traders
A new form of money for the digital age is Bitcoin. It functions internationally and doesn’t require backing from banks or governments. In 2009, when it was first developed, at least, such was the promise. Although the rise and volatility of bitcoin this year may be excellent for investors who bought in early, it threatens the currency’s ability to function.
According to a recent survey, most people think the world’s largest cryptocurrency – Bitcoin is headed back to the price point of 10,000 American dollars. If you are one of the people who think that Bitcoin has already hit its ultimate low, you may need to reevaluate the market. Some respondents predict that it will eventually recapture the $30,000 level in the interim. About 40 % of people find this plausible. However, the majority of investors and economists are more skeptical of Bitcoin.
The U.S. Federal Reserve discontinued its monetary support for the economy of the united states. This change had a big impact on the cryptocurrency and the U.S. stock market. The central bank announced today another rate increase for inflation of 75 basis points which has significant effects on risk assets like Bitcoin.
Downfall Of Bitcoin
Bitcoin is on its way to experiencing another decline of almost 43%. The leading cryptocurrency fell to a 17,622 dollar price point today. This is the lowest level since 2020. This slump continues, but some well-known figures imply that Bitcoin might be going to drop much worse. Since the end of Spring, the price of BTC has been going below a declining resistance line. Since the middle of June, the price has been rising inside an ascending parallel. Such channels frequently include corrective adjustments, thus a breakdown from them would be a given. Widespread market vulnerability prompted by the Federal Reserve’s monetary policy-fixing actions and the possibility of harsher regulations are the main causes of Bitcoin’s recent accident.
Some investment officers go as far as predicting that Bitcoin’s price might eventually fall to as low as $8,000. The future of crypto is unclear but everyone can agree that the cryptocurrency market is a long-term investment and there is going to be some short-term suffering before things get better.
Bitcoin hit its all-time high in November of last year at the price point of 69,000 US dollars. Since November the price of bitcoin has been declining and going downhill. As of now, the decreasing trend has brought the price to a low of $17,622 one and a half years ago.
Seems like institutional investors are less concerned about cryptocurrency than regular investors. Professional investors were more accepting of the asset class, unlike regular ones. Over 28% of all respondents still have a lot of faith in cryptocurrencies.