Bitcoin is below 30K for more than a week now which leaves room for discussion, rumours and different opinions. Here is a “short-list” of predictions made by different experts.
The founder of Mobius Capital Partners, Mark Mobius, warned crypto traders about buying into the dip in an interview with Financial News. He thinks that “It will not work this time until bitcoin hits $20,000, from where there might be a bounce but then the next target will be $10,000”.
💡 “Buy the dips”: after an asset’s price drops from a higher level, some traders and investors view this as an advantageous time to buy or add to an existing position expecting the asset to recover soon.
Carol Alexander, professor of finance at Sussex University, already said in December that she expects bitcoin to fall as low as $10,000 in 2022, wiping out all it has gained in the past year and a half. “If I were an investor now I would think about coming out of bitcoin soon because its price will probably crash next year,” Alexander said. Her bearish prediction is based on the fact that BTC “has no fundamental value” and serves as more of a “toy” than an investment.
Some plan to hold their BTC long-term. Those who believe that the price of the cryptocurrency will reach $100,000 this year (for example, The founder of investment management firm Skybridge Capital, Anthony Scaramucci) is happy to get in at any price below that target.
Darshan Bathija, co-founder and CEO at Vauld said, “There were a few signs of optimism in the BTC markets. According to data from IntoTheBlock’s In/Out of the Money Around Price (IOMAP) model, levels at $29,500 near were a strong support range as approximately 366.430 BTC were being held by roughly 481.910 addresses. Attempts to push the price below these levels could be met by buying from these investors who may want to increase their profits.”
Meanwhile, we should remember that these could be stormy times not only for BTC. Its main competitor Ethereum is slowly going down as well, not to forget about a recent tragedy in the stablecoins market (you can read about Luna and Terra here). Other cryptocurrencies are going down as well.
At the same time, the US economy prospect is not that colourful as well (here you can read for example Elon Musk’s opinion on it), which can also deteriorate the situation in the crypto world. Inflation and shifting monetary policy in the U.S. might continue to drive more volatility to the market.
Even with the recent decline in price, Bitcoin is still more than twice as valuable as it was just a couple of years ago. For Bitcoin, these kinds of ups and downs are nothing new and it is still one of the most controversial and unpredictable assets. Let’s wait and see how the situation evolves…