Bitcoin and cryptocurrency prices have fallen sharply this week, as the total value of the crypto market has lost nearly $1 trillion since its November peak.
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Bitcoin price dropped to a low of just over $45,000 per bitcoin, a drop of more than 30% from an all-time high of $70,000 last month. Meanwhile, other major cryptocurrencies also suffered, including Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP – all dropping by double-digit percentages from their highs.
Now, with Bitcoin, Ethereum and other cryptocurrencies all plummeting in the face of global central bank policy tightening along with global stock and other asset markets, the CEO of US-based crypto exchange Kraken has warned that he believes the price of Bitcoin could drop significantly in 2022. .
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Kraken CEO Jesse Powell said in an interview Bloomberg This week, the Bitcoin price addition may drop below $40K this winter.
“I was buying in person when we fell back to nearly $30,000, a few months ago. A lot of people have some dry powder on the sidelines waiting to come back at very low prices.”
Earlier this year, Powell made headlines when he predicted that the price of Bitcoin would reach $100,000 before the end of 2021.
It’s hard to know where [the bitcoin price] “But he said he remains bullish on Bitcoin over the long-term,” Powell said. When you look at a long-term trend line for Bitcoin and it is constantly rising. I always tell people, “If you’re thinking of buying bitcoin, think of it as an investment for five more years.”
Earlier this month, other Bitcoin and crypto market watchers began calling out some of the more ambitious Bitcoin price predictions. “$100,000 by the end of the year is a hard forecast. I think $100,000 could be a target in 2022 but I’m not sure this year,” Matt Hogan, chief investment officer at Bitwise, said in an interview.
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Others are taking a watch-and-see approach to the price of bitcoin as the US Federal Reserve and other central banks around the world move to scale back Covid-19 pandemic stimulus measures.
“Bitcoin’s current bearish trajectory remains the same as market participants continue to price fundamentals,” DailyFX analyst Tammy Da Costa wrote in comments via email.
“Throughout most of this year, rising inflation has supported bitcoin prices allowing them to climb to another all-time high just last month. However, with global policy makers now expressing a more hawkish tone, bitcoin prices have stabilized above $45,000 which continues to provide support. imminent step.
This week, the Federal Reserve said it expects to raise interest rates three times in 2022 and will speed up an end to its massive bond-buying policy in the face of soaring inflation that has reached a 40-year high.
“Like gold and other safe-haven assets, investors have used bitcoin against rising inflation,” Da Costa added.
“With higher interest rates expected to continue and a faster tapering pace, further price increases could provide an additional catalyst for price action in the long run. Technically speaking, the fact that prices have rebounded more than 20% since the November peak confirms that Bitcoin has entered the market. Bearish. Although price action is currently trading within a well-defined range, the bulls may struggle to regain control of the prominent systemic trend, at least for the time being.”