Bitcoin Price Prediction Calls for $10,000
Bitcoin is falling further and is in fear of reaching significant lows very soon, according to some analysts.
Quick overview
- Bitcoin (BTC) is currently priced at $76,694, with predictions of a potential drop to $10,000 due to concerning market trends.
- The cryptocurrency has lost nearly 14% in the past week and about 40% from its October peak, leading to decreased investor confidence.
- Recent changes in the Federal Reserve's leadership have contributed to Bitcoin's volatility, with fears of rising inflation prompting investors to shift away from risky assets.
- Analysts warn that a drop below the $70K mark could trigger further sell-offs among long-term investors, hindering Bitcoin's recovery prospects.
Bitcoin (BTC) is down to $76,694 (BTC/USD), but one Bloomberg analyst says the coin may hit the bottom around $10K due to alarming current trends.
Bitcoin has lost a lot of ground in January and February, but it could lose a whole lot more, says Bloomberg Mike McGlone. He predicts an 87% decrease that will lead to a price of $10,000. It should be noted that Bitcoin is down nearly 14% over the last week.
BTC/USDThe coin has also lost about 40% of its value from its October record high, and the lengthy bearish trend has caused investor confidence to crater. Bitcoin had one of its sharpest drops very recently when President Trump chose a new chair for the Federal Reserve in Kevin Warsh, and the BTC rate dropped from $83K to $76K very quickly as a result.
Bitcoin Downtrend to Continue
Bitcoin was already on shaky ground when last week’s Federal Reserve shakeup happened. Warsh as a pick for the Fed chair may be hawkish in his decisions, and analysts fear that if he is put in Jerome Powell’s position, he will approve numerous interest rate cuts in short order. That is what Trump has been calling for since he came into office for the second time, and that type of monetary policy has the potential to rapidly increase inflation.
The worst scenario for Bitcoin is that inflation skyrockets and investors pull back from volatile, risky assets. Instead, they may switch their focus to stalwart, proven stocks and to silver and gold. Bitcoin does very well when people have plenty of extra money to spend and do not have to worry too much about unexpected expenses and rising costs. In other words, when the economy does well, Bitcoin and the crypto currency market do well.
The crypto market is dropping rapidly, with losses of around $2.7 trillion for Monday alone. The broad crypto market is seeing a drop of about 40% from record highs right now, indicating worried investors and a skittish market.
Bitcoin has lost more than 4% over the last day and continues to drop. How far it will go will be determined mostly by economic factors, but even if the economy is doing well, if there is fear over the future because of a potentially hawkish pick for the Fed, then investors may shy away from BTC.
We anticipate a further drop for Bitcoin this week, and investors should be aware that a drop below the psychologically important $70K level could be catastrophic. It may make long-term investors ready to cash out as soon as the coin starts to recover, keeping Bitcoin from getting back to $100K or a new record anytime soon.
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