Bitcoin crash ahead? Experts Predict Bitcoin Value Going as Low as $30K
Bitcoin has long been considered as one of the most stable forms of cryptocurrencies out there with its consistent growth rate and huge potential. However, some experts are predicting Bitcoin crashes ahead based on the data they’ve seen and the analysis that they have done.
Bitcoin May Fall as low as $30K
Some experts even see the crash to be very devastating causing Bitcoin to fall dramatically. One such expert and founder of Aike capital (an asset administration agency), Alex Kruger warn that everyone involved with bitcoin that the value can go down as low as $30K which is a far stretch from its current $41.9 K value.
The prediction may turn out true if the U.S. inflation information reveals values that are higher than forecasted. Additionally, the market is expecting the CPI to rise by 7.1% for the entire year starting in December and rising by 0.4% monthly. This potential for inflation might explain why the U.S. Federal Reserves are hoping for a faster normalization of their monetary policy.
How does Crypto or Bitcoin fall into this?
Alex Kruger tweeted, that crypto assets are furthest from the risk curve. This advantage they have can also be a hindrance. The lax monetary policy may drive investors away into choosing safer and more secure assets.
The Fed Keeps a Hawkish Stance
The chief investment officer of BNY Mellon Wealth Management, Leo Grohowski states that Fed’s sudden change into a hawkish stance is quite dramatic implying that there will be a sudden hike somewhere around March.
And just like what Grohowski said, the Fed has been buying government bonds for a while now which are estimated to be around $80 billion in worth. Additionally, $40 billion dollars of mortgage-backed securities have also been bought by Fed ever since March of 2020.
It doesn’t just apply to Bitcoin
Bitcoin isn’t the only one affected here since Ethereum and other cryptocurrencies might also follow the trend. A tweet by Alex Kruger states that Bitcoin is already down by 40% from its all-time high while Ethereum is also down by 30% as well.
Overall, a lot of experts are cautious and mindful about the potential lowering of Bitcoins value thanks to inflation. The Fed and other government institutions have already made their moves to stabilize the economy. As for Bitcoin owners, it’s up to you whether you trust these experts or make your own decision regarding Bitcoin.
Please take note that the information provided here can change over time because of the volatility of the crypto market so what is being told today may change drastically tomorrow. Read the latest news but make your own educated decisions when it comes to crypto.
* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.