Analysts believe that Bitcoin is yet to experience the worst-case scenarios before 2022 ends

Experts believe that an improvement in the macroeconomic factors will help trigger a positive uptrend in its price movements. Based on reports, Bitcoin has plummeted by more than 70% from its record high in November 2021, wiping out about US$2 trillion from the broader cryptocurrency market. In the past couple of months, the BTC price declined to the US$19k resistance, twice! Eventually, most investors became skeptical about Bitcoin's prospects and continued to sell off their investments. This, quite adversely affected cryptocurrency prices and the adjoining businesses. The Bitcoin price has been revolving around a pretty tight range between US$19k and US$21k, with no signs of surging beyond that. A few months ago, Google search was trending phrases like 'Bitcoin dead' and 'Bitcoin is dead' with critics claiming that the top cryptocurrency will not recover anytime soon! Analysts believe that the Bitcoin price might crash down to US$10k before surging back to its US$40k resistance.

After the dramatic crash of the TerraUSD stablecoin, crypto investors started fleeing the market, this is one of the major reasons behind the Bitcoin crash in May 2022. Nevertheless, the BTC crash was also the result of multiple other reasons, including the fact that the Celsius Network took a fall of 70%, the US inflation level rose by more than 8.5%, and also the geopolitical crisis between Ukraine and Russia. Currently, it is anticipated that the BTC price will hit US$10k by the end of 2022. Analysts claim that Bitcoin will reach rock bottom before finally surging back to its previous US$60k price range.

When will Bitcoin finally gain back its price momentum?

Digital assets like Bitcoin are generally treated as a crucial asset class in the investment community. Currently, one of the biggest hurdles that BTC has to face is the lack of trust and loss of investment appetite, which is quite ironic for an industry like cryptocurrency since it's based on decentralization and a trustless ecosystem. Since its inception, Bitcoin's price has historically found its all-time lows, but time and again the crypto has demonstrated successful price rallies. Presently, at the time of writing this article, the BTC price has regained back its US$21k position and we can only hope that the crypto will reclaim this resistance and move forward demonstrating a positive price trend. But experts believe that under bearish market conditions, such relief rallies are quite common and do not indicate long-term prospects of a volatile cryptocurrency, like Bitcoin.

Bitcoin has been harmed by the macroeconomic situation including soaring inflation which forced the US's Feds and other central banks to increase the interest rates, further hurting risk assets like stocks. If there are any indications that the macroeconomic factors in the market are improving, then the prices of Bitcoin and other cryptocurrencies might finally surge too. But the US inflation data is scaring investors away from decentralized assets, deepening fears that the Fed and centralized organizations will become more aggressive in their fight to curb the impact of inflation.

Bottom Line

Bitcoin has survived some of the worst economic conditions in its brief history. But it remains to witness an adverse economic condition that would involve a global recession. Based on the present conditions of the market, crypto investors are waiting for a robust investment opportunity that would involve the stability of the Bitcoin price, but the idea is still quite far-fetched.