BTC could end up falling below $10k, as research says it’s possible. Firstly, 2022 has been a challenging year for cryptocurrency markets—no doubt about that. With Bitcoin entering its twelfth consecutive red weekly candle, we can say we’re in a bear market. And after that 52% plunge since its ATH, we’re definitely in winter. The summer days of thunder and purchasing Lamborghinis are gone. Time to rack up the savings!
BTC tried to break over 20-21K after the Fed pumped the interest rate between 1.5% and 1.75%. But with the Bidenomics of the Fed trying to “taper inflation” after mass printing dollars like a Xerox machine, the purchasing power of the all-mighty dollar is down. Moreover, the recession/depression is evident as mortgages are unserviceable, consumer purchasing power is at an all-time low, and 60-40 traditional investment portfolios are tanking.
BTC Could End Up Falling Below $10K
The entire crypto market, particularly investors, is feeling the pain of being dragged down to the ground. When Terra imploded, several investors expressed regret for not cashing out their profits when they had the opportunity instead of investing their savings in a volatile digital asset like Terra LUNA. Investors were relieved a few weeks ago when Bitcoin stabilized at $29,000, but this was not the end of the bad news! Bitcoin has fallen yet again! According to experts, this is not the end. Bitcoin (BTC) will continue to keep falling due to various economic and financial issues and may fall below $10K.
It’s heartbreaking to think that the Bitcoin price could fall so low. We’re talking about a cryptocurrency that drove the market to new highs in 2021 and has been widely adopted as legal tender by several luxury brands and nations. Previously, crypto analysts and experts predicted that BTC would reach $100,000; instead, it may fall as low as $10,000, which is somewhat ironic. To make matters worse, the cryptocurrency market is eerily similar to the global stock market. As a result, almost all external financial, economic, and financial issues impact cryptocurrency prices. Bitcoin is just another victim of change market phenomena.
Why Do Experts Believe Bitcoin Will Reach $10,000 By 2022?
Currently, Bitcoin is hovering around US$ 21K since the global cryptocurrency market fell due to the various macroeconomic environment and systematic risks inside the crypto space. BTC has lost for 12 weeks in a row. The cryptocurrency peaked at around $49,000 before falling below $21,000. However, it showed signs of bottoming out in mid-May and early April. However, investors are highly concerned about the inflation data, prompting them to sell their crypto investments in favor of more traditional and centralized assets.
Given the current macroeconomic environment trends, and the Federal Reserve’s tightening of interest rates, crypto investors are concerned that prices will continue to fall. Companies that have adopted digital assets are again preparing for both a recession and a “crypto winter,” or when prices fall further, or to deal with the fact that crypto prices have remained so low for such an extended period. Experts advise investors to review their asset allocation and to use Bitcoin for only a tiny portion of their investor portfolios.
Buy The Dip, Sell The Run
Veteran financial experts advise investors not to buy Bitcoin’s decline. BTC has recently suffered massive losses, wiping billions of dollars from the crypto market. As soon as investors feel relieved that the BTC price has stabilized, the token falls again, causing new nightmares for them. Individuals who are risk-taking with their money may experiment with and invest in cryptocurrencies. Most people concerned about the market’s volatility may avoid investing in digital assets. Bitcoin has brought down significant cryptocurrencies such as Ethereum and is ready to drive investors insane with even more speculation!
Crypto Haters Will Hate
Anti-Bitcoiners will keep on hating on the Blockchain. Still, traditional assets aren’t as solid as they used to be. Firstly, as stated earlier, mortgages have become unserviceable as the economy tanked into a recession. Secondly, those 60-40 traditional portfolios lost purchasing power after the Fed printed all those dollars. Third, inflation is rampant as a consequence of the former, and thus, consumer confidence is at an all-time low. Look at how key retail stocks like Amazon, Walmart, and Target perform. It ain’t just crypto. It’s the economy!
Also Read: How To Get The Spotify Pie Chart?
