Bitcoin and cryptocurrency prices have fallen sharply this week, with the crypto market hitting nearly $1 trillion since peaking in November.
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The Bitcoin price for Bitcoin has dropped to just under $45,000, more than 30 percent of the previous month’s record high of $70,000. Meanwhile, other major cryptocurrencies such as Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP are also struggling, all of which are dropping double-digit percentages from their highs.
Bitcoin, Ethereum, and other cryptocurrencies are currently the best of the US-based cryptocurrency Kraken as they, along with global stock markets and other assets, are facing tightening global central bank policies. The chief warned that the price of Bitcoin could drop drastically in 2022.
A lot of people see less than $40,000 as an opportunity to buy,” Kraken CEO Jesse Powell said in an interview. Bloomberg’s Bitcoin price gains this week could dip below $40,000 this winter.
“When I returned nearly $30,000 a few months ago, I personally bought it. A lot of people just have dry powder on the side just waiting to come back down. I.”
Earlier this year, Powell was mentioned when he predicted the price of Bitcoin could hit $100,000 by the end of 2021.
“I don’t know where I am [the price of bitcoin] [if you look at the long-term bitcoin trend line, it’s up all the time,” Powell said. I always tell people, “If you want to buy Bitcoin, think of it as an investment for over five years.”
Earlier this month, Bitcoin and other crypto market watchers called for some more ambitious Bitcoin price predictions. “It’s hard to predict $100,000 by the end of the year. I think we can target $100,000 by 2022, but this year I’m not sure,” said Bitwise CEO Matwise Hogan in an interview.
Some are paying attention to Bitcoin prices while the US Federal Reserve and other central banks around the world are easing measures to strengthen Covid-19 against the pandemic.
DailyFX analyst Tami Da Costa posted the comments via email.
“Rising inflation has kept Bitcoin price high for most of the year and hit record highs last month, but with global politicians adopting a restrictive tone, Bitcoin price remains steady above $45,000 and still accessible. Support for the upcoming move.”
This week, the US Federal Reserve forecast interest rates to triple by 2022, limiting its massive bond-buying policy in the face of rising inflation, the highest level in 40 years. He said it would be faster.
“Investors have used Bitcoin to fight rising inflation, just like gold and other safe assets,” Dacosta added.
“Further rate hikes could be an additional catalyst for longer-term price behavior as higher interest rates and more rapid declines are expected. From a technical point of view, the price will return more than 20%.
The fact that it was high in November confirms that Bitcoin has entered a bear market. The price behavior is currently trading within a clear range, but at least for now the gains are systematic. It can be difficult to get focus and a clear trend back on track.