Crypto: Is Bitcoin Price Going To Drop?

Bitcoin flirts with the lowest level since 2021 and it has already raised concern among so many people around the globe. Is the Bitcoin price going to drop? Well, to answer that question, we need to understand the market better.

Is Bitcoin price going to drop
Is Bitcoin price going to drop

A stock market selloff spreads to the digital assets and now the prices of Bitcoin have neared the lowest prices ever. It is predicted that the chances of Bitcoin prices dropping more is quite high and that definitely raises eyebrows among the ones who have invested in cryptocurrency.

The price of Bitcoin has dropped by 8% in 24 hours and this is the biggest one-day drop since January. Currently, the price has dropped below $36,000 and this largest digital asset was trading at a value of around $40,000 for the majority of the year.

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In November of 2021, the price of Bitcoin reached its all-time high of $68,000. Currently, the price of Bitcoin bottomed below $35,900 which is the lowest level in 2022.

“Negative developments over the weekend could spur a selloff to around $32,000 setting Monday up for a bad start,” said Jeffrey Halley, an analyst at broker Oanda. “If risk sentiment continues plummeting, the chicken bones on the technical charts suggest Bitcoin could be on its way to $28,000 and then $20,000.”

Other Coins Suffering The Same Fate?

Not only Bitcoin but also the second-largest cryptocurrency Ether also suffered a similar fate and declined almost at a very similar level. Since mid-march of 2022, Ether has fallen to its lowest level, and the Ethereum blockchain network lost up to 7% in the trade, amounting to almost $270.

Just like Ethereum and Bitcoin, the smaller cryptocurrencies went down in the deep red too. Altcoins like Solana dropped by almost 10% while Avalanche went 13% lower and Cardano retreated by 9%. Other coins like Shiba Inu, Dogecoin, and even Memecoin also fell by almost 6% lower. Memecoin however was intended as internet jokes but right now has got the attention of the market and looks like a promising avenue to invest in.

Right now, the monetary policy environment looks pretty challenging and dynamic and the investors are all ready to take on this new challenging path. In the past few days, the markers have seriously whipsawed and the scenario is quite unpredictable too.

Just before the drop-in prices, cryptos like S&P 500 and Dow climbed by more than 2% which came as a piece very good news for the investors. Since 2020, this was the best one-day gain for the coins. Alongside the crumble of the cryptos, tech-heavy Nasdaq also tumbled by 5% which was the worst decline in the last two years.

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What’s The Future Of Cryptocurrency?

The high inflation has seriously troubled the banks and it looks like the Federal Reserve is going to increase the interest multiple times in the current year. Alongside the high inflation, this denting economic demand is causing a huge recession which has become a serious concern for the banks.

“In light of fears of rising inflation, most investors have taken a risk-off approach — selling stocks and cryptos alike in order to cut down risk,” said Darshan Bathija, chief executive of Singapore-based crypto exchange Vault.

From the Bloomberg show, we also get to see the extensive impact on the cryptocurrency universe. While Polkadot was down by 6.7%, Cardano fell by as much as 8.4%. The chief executive officer of Mudrex said “The downward trend is likely to continue for the next few days”. He also mentioned the value of Bitcoin could fall down to around $30,000 level.

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