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HomeCRYPTOCURRENCIESBitcoin Below $30,000: Will It Keep Falling? • ENTER.CO

Bitcoin Below $30,000: Will It Keep Falling? • ENTER.CO

The value of Bitcoin fell more than 6% on Wednesday, trading below $30,000. The cryptocurrency reached its lowest point in 11 months trading at exactly US $29,085, which means a loss in value of almost 57% compared to November 2021 when it reached US $69,000: the highest value in its history. Will this downward trend continue or will it improve?

According to specialized financial and economic media, for now it is difficult to know if Bitcoin will soon recover from the losses, due to various economic situations that are hitting dozens of countries. On the one hand, there is the crisis in Ukraine and the geopolitical tensions with Russia that have led to harsh economic sanctions, which in turn have taken their toll not only on large technology companies, but also on the prices of products such as wheat, corn, some meats, oils, seeds, agricultural inputs, gas and oil on a global scale.

The above scenario has exacerbated inflation in countries that had economic relations with Russia, which has limited the purchasing power of those who usually invest in risky assets such as Bitcoin and other cryptocurrencies.

In addition to the Russia-Ukraine situation, some analyzes also point out that other causes behind the value of cryptocurrencies are related to the confinement in China due to its zero Covid policy, and that it has deteriorated maritime trade and production. industry on a global scale; but also to the inflation that is experienced punctually in the United States and its adoption of restrictive monetary policies by the Federal Reserve related to increases in bank interest rates, which has also limited the liquidity of dollars.

What do the forecasts say about the value of Bitcoin?

According to Bloomberg, the above phenomena impact the value of cryptocurrencies and other cryptographic assets such as NFTs since, given the traditional volatility in their value and the global economic uncertainty, investors are changing their asset portfolio towards options. of lower risk, investing in Treasury bonds or in traditional currencies such as the dollar.

This period of value collapse, which when it has happened at other times has been called “crypto winter”, is also seen by other analysts as long-term opportunities, as they trust that in the future, Bitcoin could recover its previous numbers.

However, for now the forecasts are not encouraging. Or at least not for those who hope to have short-term profits in this type of investment, since Jay Hatfield, the executive director of the investment company Infrastructure Capital Advisors in conversation with Bloomberg, dares to predict that Bitcoin will end in 2022 “with a quote below US$ 20,000».

Images: Unsplash

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