No big news in Bitcoin and crypto territory this week. Bitcoin has turned flat at $20,000, and it doesn’t seem going anywhere these days. It’s a bear market out there, and by the looks of it, it will continue for a while. Key metrics also show that it has bottomed for the moment, with traders still fearing further drops.
Those could likely happen soon, and the biggest pessimists project the low price at $10K. Numerous traders have insisted that the price will fall to $10K in the short-term due to the heightened volatility caused by rising inflation and interest rates.
The Crypto Turmoil Continues
The world is bracing for an economic crisis and the crypto winter has arrived much earlier this year – ironically, during the summer. Rising interest rates and inflation are rampant in the USA and around the world, and prices on everything have sky-rocketed. It’s clear that we’re entering an era of crisis that will hit many hard. Surprisingly, instead of being the answer to those problems, cryptocurrencies have risen and fall together with other commodities.
Currently just over $20K, further price drops for Bitcoin have not been excluded. Many traders warn that the price could get as low as $10,000 before things get better. You know – the “night is darkest before the dawn” kind of thing. Many traders don’t even believe that, and have pulled all their assets out of the market.
In the past 24 hours, the overall crypto market fell by over 2%. The value currently stands at around $910 billion, so things are not looking good for cryptos in general. It’s all connected to Bitcoin that takes other coins up or down depending on the bearish or bullish sentiment.
Where’s the bull market? To be honest, not many experts see bulls coming back for a while. At least in the short-term. In the next period, we can expect pullbacks if history is to be repeated. Some traders see Bitcoin as low as $10,350, which was the price point during bear market cycles in 2013 and 2017. The current dragdown has been going on for 229 days and seen a maximum drawdown of 73%, which is similar to that of 2013.
If these metrics are right, the lowest price points can be expected in Q4 2022.
Any Light on the Horizon?
Crypto investments are not like investing in gold. Bitcoin and the overall crypto market are highly volatile, and these price swings mean nothing when it reaches a price point of over $50,000, for example. It was like that last November when Bitcoin stared in the face of adversity and went on a run up to $69,000.
Things aren’t that great now, but historically, these price swings always catch up momentum. Maybe 2022 is not the year of Bitcoin like we thought due to unprecedented events, but things will pick up in the future. The worst thing investors can do is pull their assets out of the market. That’s a major mistake and the biggest problems why Bitcoin can’t catch a break.