Will Crypto bounce back?
In the past two months, cryptocurrency markets have been subject to significant pricing changes. From its all-time high of $3 trillion in November 2021, the total value of the global cryptocurrency market cap has since fallen to its current level of $949 billion as of today. The cryptocurrency markets have been hit hard by a big sell-off as a result of weak global cues amid rising inflation and interest rate hikes. Investors and traders are already speculating about whether or not the cryptocurrency markets will have a recovery this year. There are a number of points of view held by professionals in the crypto business about this topic.
A number of industry professionals are of the opinion that cryptocurrency markets will recover from the recent sell-off within the next few months; however, some are of the opinion that investors will continue to be wary in the immediate future.
There is a growing relationship between cryptocurrency and the financial markets. Cryptocurrencies have reacted in the same manner as global financial markets, which have also been negatively affected as a result of weak global cues.
Experts believe that volatile cryptocurrency markets will persist for the near future since inflation is expected to last for another approximately two years and the economy is expected to enter a recession soon.
The current price trends of bitcoin demonstrate that its stability cannot be guaranteed.
This year is not expected to produce many outcomes for investors due to the historical trends that involve the halving cycles of Bitcoin’s supply. The negative market for cryptocurrencies in 2018 is likely to be a good indicator of what 2022 may bring. The price of bitcoin might be anywhere from $14,000 to $21,000 at this moment, according to the estimates of key indicators, which are based on the historical lows that have occurred during periods of adverse market conditions. These kinds of price developments typically dissuade investors from diversifying their investment portfolios by purchasing digital assets. And if Bitcoin truly does fall as low as US$14,000 or even close to it, it will actually result in the loss of about 80 percent of its value from its all-time high of nearly US$68,000. This would be the outcome of Bitcoin falling as low as US$14,000 or even close to it.
There are a number of investors that adore the unpredictability of cryptocurrencies and would gladly put their money into Bitcoin if given the chance to do so under the current circumstances. The major cryptocurrency exchanges have indicated that the amount of activity in the cryptocurrency market has expanded rapidly, and that this increase is being followed by larger trends. Bitcoin is still the largest cryptocurrency investment to date, as seen by the increasing number of professional investors who are entering the market and adopting it. This indicates that Bitcoin is still the most trustworthy cryptocurrency investment.