Bitcoin’s price is likely to deter investors for the foreseeable future. According to several market analysts, the cryptocurrency is at risk of falling below the $20,000 threshold.
Bitcoin suddenly crashed. The digital currency fell below the $30,000 threshold following panic over the crash of UST, the algorithmic stablecoin issued on the Terra blockchain. The entire cryptocurrency market and non-fungible tokens (NFTs), contracted, losing billions of dollars in valuation within a few days. According to several analysts king bitcoin’s descent to hell shouldn’t stop there. In particular, this is the view of analyst and trader Rekt Capital. On his Twitter account, he estimates that the price should fall further in the coming period.
His analysis is based on past moves observed in the market. In the past, Bitcoin’s price has always shrunk by 80% during the “Bear market” phases. In this case, the cryptocurrency must first fall below the key $20,000 threshold before you can go back up. By falling below 20,000, BTC would reach the lowest point of the downward phase. The analyst expects a low of around $ 15,812.64. Obviously, technical analysis and the history of the currency’s price are not enough to predict the evolution of a value. Other factors, such as macroeconomic factors, can influence Bitcoin’s progress. Bitcoin is still highly correlated to traditional financial markets, but also risks suffer from the fall of the S&P 500 index, says Michael Wilson of Morgan Stanley, a famous American investment bank.
Despite its burgeoning safe-haven status, the queen of cryptocurrencies relies heavily on market movements, including technology stocks traded on Wall Street. This factor should help pull the price of BTC down. Despite the decline, many investors advise betting on Bitcoin. This is the case of Robert Kiyosaki, the famous bestselling author who specializes in finance and personal development. He assures that Bitcoin will eventually become a safe haven if the dollar threatens to crash.
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