The crypto market continues to struggle due to the hawkish macroeconomic circumstances. The Bitcoin price falls further by 1.28% in the last 24 hours and falls below the $19K mark. It is currently trading at $18,995. Bitcoin’s poor performance is concerning investors and experts. Experts believe that Bitcoin can see a repeat of the November 2018 scenario.
Michael van de Poppe, the CEO of Eight Global and a major crypto influencer, stated that the crypto and bitcoin market is in the November 2018 phase. In November 2018, Bitcoin fell close to 37% and erased more than 70 billion USD in losses. Bitcoin continues to fall close to 50%. Now, analysts fear that the bearish scenario of the Bitcoin price may repeat.
Several experts, such as Florian Grummes believe that Bitcoin will dump to $10k. In the worst-case scenario, he fears that BTC may even fall to $6k.
Why Is Bitcoin Price Struggling
Bitcoin price continues to fall due to hawkish macroeconomic conditions. The inflation level continues to soar in the global economy. It is further exacerbated by the continued Russia-Ukraine war. The Organization of Petroleum Exporting Countries also decided to cut oil supply to surge prices. According to the Biden administration, OPEC+ decided due to its pro-Russia stance.
Reports suggest that OPEC’s decision will further increase energy prices globally.
The Consumer Price Index highlighted an inflation level of 8% in the economy. The Federal Reserve believes that it will need an extremely restrictive monetary policy to curb inflation levels till 2024. However, the Fed seems to be losing its battle against inflation. It has already increased the interest rates four consecutive times and is likely to do so again.
Recessionary fears will also cause trouble in the crypto market.
Will Bitcoin Dump 50%?
Some analysts differ in their opinion about BTC’s next move. While the on-chain metrics do suggest similar sentiments, analysts believe that we have already been in the bear market for 124 days, since the BTC was trading at $30k. Therefore, by the 50% rule, BTC may bottom out at 15K and then see a strong bull market.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.