Bitcoin Bounces Back from Death, Reaches US$32k, and Gives Hope

Yesterday's Bitcoin price shows that the crisis in price drop will be improved soon.

Things have not been good for Bitcoin lately, as the price fell under US$30,000 on Monday night amid a sell-off in broader markets caused by the U.S. Federal Reserve's aggressive monetary tightening as well as recession fears. However, yesterday's Bitcoin price recovery to US$32,000 might be a silver lining in the growth of the largest cryptocurrency in the world.

Monday's decline left bitcoin at a 10-month low and set its lowest price this year. The last time the largest cryptocurrency by market cap fell below the $30,000 threshold was on July 20, 2021, when it hit $29,301 before rebounding. However, bitcoin recovered in European hours on Tuesday as global sentiment slightly improved. European index Stoxx 600 rose 1.46%, while Germany's DAX added 1.92%. Meanwhile, futures on Nasdaq 100 Index rose 1.86% a day after valuations plummeted to the lowest in two years. S&P 500 futures were up 1.15%.

Impact of Tech-led Sell-Off

The tumbling tech stocks have accelerated Bitcoin's fall as its price fell nearly 10 percent overnight on Monday with other major crypto coins following suit. Cryptocurrency analysts and market watchers are suggesting the correlation between crypto and mainstream market prices will continue for as long as investors retain their risk-off attitude.

Edward Moya, the senior market analyst at Oanda, said in a report to CoinDesk:

"The recent crypto slide is strictly based on the tech share-led sell-off and not fundamentals for the crypto-verse. Bearish momentum could take bitcoin towards the $28,500 level, but that might start to be where some long-term bets come into play. The long-term fundamentals remain in place for bitcoin, but a return to record highs will take a long time. Bitcoin will start to stabilize when the bloodbath on Wall Street ends and right now many investors are still in panic-selling mode."

Is There Hope for Bitcoin?

Most Bitcoin price predictions are still pointing to further growth over the next few years. There have always been concerns raised over the scalability of BTC, but to date, these have had no real impact on price and Bitcoin has never come close to losing its spot as the top cryptocurrency by value and market capitalization. Potentially, Bitcoin (BTC) has been pegged for continued growth – especially over the longer term – and there are few Bitcoin price predictions forecasting any major price dips on the horizon. Of course, you might want to wait it out and see if the price comes down before adding BTC to your portfolio, but then there's every chance you will miss out on the next bull.

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