Will Bitcoin Stoop to As Low As 30% in the Coming Months?

The price of Bitcoin has been fluctuating massively, making investors worried about its future prospects

The price of Bitcoin has been declining since November. The cryptocurrency's sharp price drop was triggered by rumors and speculations about a certain Bitcoin ban and increased regulation, whereas, others say that it was due to the BTC cycle and the price dive was inevitable. Bit it was not just Bitcoin, the digital currency rollercoaster ride of 2021 carried on until 2022, affecting major cryptocurrencies and loss in financial assets. If we focus on only Bitcoin, we will notice that there has been a downward trajectory, especially since the beginning of 2022, that made the crypto hover around US$40,000 and even below that. Recently, the BTC token has been striving toward gaining its lost market value and is actually slowly and successfully achieving that. Around April 4 and 5, its prices soared around and above US$47,000, marching steadily towards the US$48,000 resistance. But then again, it dived. For a brief period of time, BTC revolved around US$43,000, but it consistently kept diving down. According to coinmarketcap, the coin is currently staged at US$39,000. And this has got investors worried about their investments and the future prospects of Bitcoin. 

Bitcoin has had a massive swing in prices, with its market prominence rising and falling sharply. One of the many reasons why BTC faced such downturns is due to a decrement in the global stocks that has been caused by continued uncertainty around the new Covid variant and the higher interest rates, which made it more expensive for businesses to borrow money. This divulged over the entire cryptocurrency market, combined with fears of further regulation. Also, fears over US interest rate hikes and China's continued crackdown on digital assets also played a huge part. Shortly, when the BTC prices shot up, analysts estimated that it was mainly due to the executive order issued by the Biden government, and also because of the enhanced involvement of cryptocurrencies, especially Bitcoin, in the Russia-Ukraine war.

Are downturns like this normal for crypto like Bitcoin?

Well, some experts believe that for volatile crypto like Bitcoin, price volatilities like these are quite common. But they still think Bitcoin will reach the US$200,000 mark by the end of the year. But under these conditions, Bitcoin would need to attract another wave of investors, especially young and new investors who are ready to put their money on a volatile crypto asset like BTC. Meanwhile, the growth of NFTs, Web 3.0 applications, and decentralized finance applications has resulted in the significant growth of the Ethereum network, one of Bitcoin's biggest enemies. 

Bullish predictions about BTC have been made before, and the most positive ones have claimed that the price of Bitcoin will shoot up in the Q2 of 2022, if not, then at least by Q4, which marks the end of the year. 

Is Bitcoin a worthy investment?

Well, Bitcoin will always remain a worthy investment for those who are willing to risk their money a this volatile, decentralized market. It is quite hard to predict if Bitcoin will dive more or not since earlier predictions about Bitcoin's bright future for the month of April are yet to be fulfilled, but it is for sure that Bitcoin will soar at the top of all other cryptocurrencies, as it has always been for the past several years. 

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.