Is Bitcoin Price Going To Increase?

When will the BTC price grow?

Since May 2022, Bitcoin has shown a 40% downward movement. This period can be considered as the beginning of Crypto Winter, and the following points are referring to this statement:

1. After reaching the psychological pricing of $70,000, Bitcoin has entered a deep long-term correction. For the first time, BTC has dropped lower than the previous bullish trend’s high. The price movements of Bitcoin are cyclical. The correction of the rate is a natural phenomenon after rapid growth.
2. The regulators are attempting to control the crypto market. Any attempts to rule the cryptocurrencies lead to price reduction.
3. The presence of economic justifications for major investors to abandon high-risk assets and their subsequent capitulation. According to Bank of America, the number of active users of cryptocurrencies decreased by more than 50%.
4. Lack of growth points for Bitcoin and the crypto market in general.

When will the Crypto Winter end?

There are no preconditions for the early start of the crypto market recovery at the moment. The situation on the market is also complicated by the following factors:

1. The Fed policy;
2. Freezing of the deposits and imposing restrictions on crypto exchanges and DeFi services;
3. Stablecoins untied from fiat;
4. The panic mood in the crypto community.

The duration of the Crypto Winter depends on many factors. At the moment, it is very difficult to predict how the crisis will develop in the future. The growth of the Fed rates refers to the overheated US economy. Crypto exchanges and DeFi services activate restrictions to slow down the decline, as well as reduce the number of employees. The stablecoins untied from fiat is a very negative signal. Stablecoin investments are becoming less attractive, as this type of asset was considered by investors as more reliable compared to altcoins. Despite Bitcoin’s rate decline, the dominance index shows an increase from 40% to 46%. This indicates that the altcoin market is falling even more.

Perhaps the fall of BTC to the price marks of $10,000-$8,000 will trigger large investors to commit massive purchases, as it already happened at the end of April 2020. At that time the market started to be filled with money, which led to the seven-time growth of Bitcoin. So, let's wait for spring together!

News on the BTC price by the end of 2022

Today, Bitcoin is under a lot of pressure from the general situation in the global economy. What is more, the collapse of the FTX exchange amid liquidity problems that happened not so long ago, greatly affected the price of BTC.

In times of crisis, investors tend to look for solutions to protect their assets and not increase them. They also choose instruments that are more resistant to volatility, such as government bonds or precious metals. Speaking of government bonds, the increase in the US Fed rate makes them more attractive than Bitcoin, which has continued to fall for a whole year.

The Internet is filled with forecasts about the upcoming decrease in the price of BTC to the levels of $12,000-10,000. This scenario may turn out to be quite realistic, since serious crises in many large economies have already begun, and in some, they are brewing. The world economy is forming a global downward trend and there is no reason to expect fundamental growth from the most volatile investment tool, Bitcoin. Despite the fact that from time to time it shows good growth, in this situation, it is nothing more than speculation. Growth occurs solely on a slight optimism, driving ignorant capital into long positions, but later annual price lows are updated.

In terms of long-term investment, the price of Bitcoin looks quite attractive right now, but one has to be prepared for a further decline scenario.

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.