Bitcoin Finds Stability Near US$40k! Is it Price Rally Time?

Bitcoin is among the top most trusted cryptocurrencies in the market, but will it be able to retain its position? 

According to reports, Bitcoin was the most traded cryptocurrency in 2021. It is the oldest cryptocurrency in the market, and significantly the most trusted one. However, the crypto witnessed a seesaw in prices from the end of 2021, till the beginning of 2022. The BTC token witnessed its highest average price in November, but market volatility led to its sharp fall in December 2021, and then it recorded its lowest price in January 2022. A few weeks ago, around April 4 and 5, the prices rose above US$47,000, quite nearing US$48,000. But with volatile forces at work again, the BTC token again fell below US$40,000, making investors worried about its future prospects. Even though Bitcoin has always been one of those cryptos that have soared high even during the worst market phases, its lessening market capacity has got investors to look for other cryptos for investment. Besides all the financial dilemmas in the market due to the pandemic, the Russia-Ukraine war has also made an adverse impact on the cryptocurrency market. 

The value of Bitcoin became even bigger than the value of the Ruble, the Russian fiat currency. Amid a positive price trend in the crypto market, and at a time when there is a general downfall in the stock market during the ongoing geopolitical crisis, BTC investors keep hoping that the popular investment asset may soon rise to overtake its all-time highs and reach US$100,000 by the end of 2022. But the question is, currently, according to coinmarketcap, Bitcoin's market value is trending around US$40,000 which fell directly from US$47,000 and then to US$43,000, so, will it possible for Bitcoin to even cross US$50,000 by the end of May? Maybe or maybe not!

How has the Ukraine-Russia war transformed Bitcoin's relevance in the market?

Experts say that the Russia-Ukraine war has completely changed the crypto industry. From accepting donations in the form of cryptocurrencies to establishing DAOs to handle the crises, the impact of Bitcoin and other cryptocurrencies has played a huge role in handling the financial crises in the two nations. Experts have said that since Bitcoin is the only decentralized currency that became a legal tender, unlike altcoins that are mostly involved with centralized agencies owned by organizations, Russians can use it to evade Western sanctions, and can save the country from a massive financial predicament.

Will Bitcoin cross the US$40k resistance anytime soon?

In March 2021, Bitcoin started going up drastically, giving investors hope about a positive price rally. According to research conducted by Goldman Sachs, the US Federal Reserve is due to four interest rate hikes in 2022, and if it plays out well, it might equate to at least four more fearful corrections in the crypto market. With more institutional money joining the crypto market, perhaps the investors should be even more careful regarding volatilities moving back and forth. 

Well, to simply answer the question, it is quite impossible to predict if Bitcoin will have a price rally or it will continue to fall since it all depends on investor sentiments. Investors are currently keeping a very close eye on the coin's market movements. So, probably there will be a price rally and Bitcoin is just gearing up for its big achievement, or maybe Bitcoin will eventually lose its market dominance and altcoins takeover it!

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Disclaimer: The information posted in the article is for educational purposes only. By using this, you agree that the information does not constitute any investment or financial advice. Do conduct your own research and reach out to financial advisors before making any investment decisions.