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Bitcoin might dive further taking down the entire crypto market with it
The price of Bitcoin fell below US$30,000, which is an all-time low since July 2021. The crypto market is in huge turmoil as the investors are selling off their investments for more traditional and centralized forms of assets. The volatility of the cryptocurrency has finally caught up with the investors. With the global market in turmoil, BTC continues to experience challenges in its price as it dropped more than 20% within the first half of May 2022. Now as key indicators and analysts are predicting an upward momentum in the crypto’s price, another Bitcoin price prediction struck the market as the Guggenheim Chief Investment Officer, Scott Minerd, predicts that Bitcoin may fall as low as US$8,000 from its current levels. This drop would actually represent a fall of more than 70% drop from its almost stabilized price of US$30,000. It is predicted that if the BTC price stays stabilized at US$30,000, the new ultimate bottom would be US$8,000.
Bitcoin has been consistently struggling to keep up with its value since late 2021. Back in April 2022, the BTC price started recovering hinting toward US$47,000. Key indicators have already warned that if Bitcoin is unable to cross the US$48,000 mark, its value might decline massively, and take down the entire crypto market along with it. If Minerd’s forecast were to come true, it would inflict even more pain on Bitcoin and the broader cryptocurrency and economic markets.
Investor Expectations are being Crashed
Analysts believe that BTC could fall further below because of the Fed regulations and tightening monetary policies. When it comes to regulating cryptocurrencies, there is a lot of confusion about how they should be legally defined. There is already a regulatory framework in the securities market, hence, policymakers think that it would not be too unusual if those same rules were applied to another set of investment classes like cryptocurrencies. But investors feel that increased regulation would indicate overly restrictive and controlled innovation.
The crypto market has been increasing following the stock market lately, which is combined with increased digital asset adoption and slumping prices. Several factors in the stock market like rising inflation, geopolitical crises, and concerns over stricter monetary policy by the Fed are affecting the crypto market adversely right now.
Despite the ups and downs, Bitcoin has managed to keep its head above the water and is still one of the most powerful cryptocurrencies in the world. Several luxury brands are accepting Bitcoin as payment, but its value is still stagnant, in fact, it seems like its value will surely decline more. It is only a matter of time before Bitcoin disintegrates into oblivion, it needs the support of its investors to regain some semblance of its past market dominance.
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