Bitcoin price 2022 - What do experts think about it?
Bitcoin [BTC] has seen some headwinds over the past few days. The price of king coin and other cryptocurrencies fell on September 5. As of press time, the king coin changed hands at $19,307 after recording a 2.99% increase in the past day. However, in the past seven days, it has dropped 3.85%.
So why be optimistic?
In this regard, Bloomberg analyst Mike McGlone stated: “Bitcoin is a wild card ripe to perform better when stocks bottom, but converts to gold and bonds. than". Furthermore, according to the analyst, it is “ready” to outperform once traditional markets bottom out.
McGlone, through his recent post, notes that the stock market trend will be determined by a tightening of the US Federal Reserve. He also stated that BTC remains a wildcard that can challenge the trend. In addition, many analysts and investors trust and agree with McGlone.
What about the bears?
Just as some people perceive BTC to be bullish, there are still some who believe that BTC is still risk-free and risk-averse. Bitcoin, at press time, is trying to break above its psychological level of $20,000. According to Craig Erlam, an analyst at Oanda, a global company that provides leading currency solutions to both retail and corporate clients, risk aversion is once again creeping into the market. .
Since the June low, around $17,500, is the next key level below this level, a significant breach at this point could be quite damaging.
Craig's bearish view is also shared by other analysts. “Bitcoin’s daily range has been shrinking massively and this gives us an indication that a big round of investment is underway,” said Naeem Aslam, an analyst at broker AveTrade.
Aslam provided arguments to support his claims. Additionally, traders have defied selling pressure to keep the crypto price up.
Also, according to Reuters, investors and exchanges may face some difficulties due to the current price volatility of BTC.
This has seen the top cryptocurrency steady in the $17,000–$20,000 region since July.
This is because the price trend shows a sharp decrease in BTC volatility. Thus, making it “boring” for investors who may soon turn to its competitors like Ether.
Meanwhile, Bloomberg recently reported that investors have “fallen into hibernation” during the prolonged crypto winter.
This is because registered BTC activity on the chain is alarmingly low. The coin has also been registered for substantial withdrawals from regulated exchanges.
As Difficult as Possible
Despite the high price predictions by analysts, short-term price prediction of BTC has proven to be very difficult. However, the king coin is likely to remain under pressure as long as inflation remains high and the Federal Reserve continues to tighten financial conditions. As a result, this could reduce demand for risky assets.
Sep 08, 2022