Bitcoin is now subject to the same trends as stock markets, medium-term prospects suggest that inflation will rise, which will force the Fed to raise rates more aggressively, and this will reduce the potential profit of investors. The conclusion is as follows — investors will exit bitcoin, and its price, according to various forecasts, may drop to $8-15 thousand by the end of the year
The reason not to buy bitcoin now is extremely vague prospects for the global economy. It is quite obvious that the markets are expecting a recession, and in the near future. In such a situation, all assets may decline, especially risky cryptocurrencies, because investors will prefer more real investments.
And the intention of developed countries to introduce their own digital analogues of national currencies. Against this background, increased regulation or even bans on the use of cryptocurrencies may be real.
“It is enough to recall the practice of China, which completely banned the operation of crypto exchanges and the use of cryptocurrencies, while a pilot project on the introduction of the digital yuan was being implemented in the country. The EU, the USA and Russia intend to introduce their analogues of national currencies”,
And another reason why you should abandon investing in bitcoin in the near future is the problems of leading crypto exchanges, the expert believes. The day before, some exchanges had problems withdrawing funds due to falling assets. Investors simply could not withdraw their funds for some time.
As well as the decline of the CFA market in recent days, as the final wave of structural correction in the market, which began at the end of last year. Of course, the decline in prices has become quite strong, as can be seen from the volume of liquidations in BTC and ETH, however, neither technically nor fundamentally, I do not characterize this fall as the beginning of the end for the crypto market.
Currently, the BTC exchange rate is at levels where it is already uncomfortable for long-term buyers (many holders who have been holding bitcoin for more than 3 years are starting to sell it), for mining (equipment of previous generations is already “minus”, S17 is on the verge), so without significant negative triggers, I believe that investors and miners, in general, they will take a wait-and-see position and prefer to sit out the current decline without a multiple increase in sales of cryptocurrencies from their stocks.
In any case, those who are stuck in BTC and ETH at highs without “shoulders” will endure to the last. I would not wait for the avalanche to start selling crypto assets now. It is also important to note that “whales” (wallets > 10k BTC) smoothly accumulate cryptocurrency without dumping it, which indicates the presence of a large number of players for whom current prices are a huge opportunity, and not just paper losses.