Bitcoin, the world’s largest cryptocurrency by market cap, is struggling to surpass the $20,000 mark as investors are turning their attention to Ethereum and other cryptocurrencies.
Bitcoin previously has seen a strong rally, surpassing $25,000 after US CPI was lower than forecast. Inflation seems to have cooled down that makes motivation for risky assets like cryptocurrencies. According to expert Edward Moya, despite a sharp drop last week, In the long term, Bitcoin’s price could continue to rise. The crypto’s downfall may be related to the stock market, he added.
Meanwhile, Susannah Streeter, senior investment and market analyst at Hargreaves Lansdown, said that the market is not showing the pattern of a flash crash but seems to be a result of a large sale transaction, in the absence of other more external factors. Similarly, some experts are also quite bullish on Bitcoin’s future, saying that it could rise to $29,000.
On the other hand, there are also many experts predicting Bitcoin’s price may plunge to $10,000. According to the latest Bloomberg’s MLIV Pulse survey, 60% of the 950 investors polled forecast Bitcoin will most likely drop to $10,000 and only 40% think that Bitcoin can recover back to $30,000.
After much bad news about the crypto market recently, many Wall Street investors also believe that Bitcoin will quickly drop to $10,000.
A nightmare called “Fed”
On August 26, in his much-anticipated annual policy speech at Jackson Hole, Wyoming, Federal Reserve Chairman Jerome Powell affirmed that the Fed will keep fighting inflation, which is still running near its highest level in more than 40 years. This is also an affirmation for the next rate hike that the Fed will give in the next meeting.
According to Jerome Powell, continuing to raise interest rates is a “bitter medicine necessary” for the US economy. This move may shock many people but will be the right measure for the future. It is considered a strict commitment of the Fed Chairman to prevent inflation.
As a result, Bitcoin price plunged from $21,800 to $19,783, the lowest level since July 15, 2022.
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