With the recent increase in volatility in both stocks and cryptocurrencies, many investors are turning to more stable assets like gold.
Cryptocurrencies showed no signs of slowing down as the week wore on with geopolitical tension, with Bitcoin briefly dipping below $40,000 for the first time in two weeks. Ether decreased 5%, Dogecoin 4.5% and Shiba Inc 6.5%.
Related Reading | Bitcoin on track to $38,000 amid global uncertainty
In the past, the regulations of China and the US influenced the price of Bitcoin. However, it seems that this time, investors are abandoning other more stable volatile stocks as gold. And due to a looming war in Europe from the East. Geopolitical tension could cause prices to decline soon criptomonedas significant.
in a friday bulletinwrote David Duong, head of research at Coinbase Institutional;
The performance of cryptocurrencies in the last week shows us that there is very little room for complacency regarding any of the major themes affecting this market. The open conflict could potentially affect bitcoin hash rates, which could exacerbate the weaker market knee-jerk reaction for beta high-risk assets like cryptocurrencies.
Cryptocurrencies continue to move in lockstep with growth-sensitive risk assets like stocks. Even though Bitcoin has been heralded as an asset that would survive global economic or geopolitical difficulties for years. However, the narrative has not become reality because cryptocurrencies did the same thing when prices were low last year. And then rallied once they hit new highs months later, all while staying within a relatively narrow trading band.
Analyst Prediction for Bitcoin Price
Cryptocurrency values are highly volatile and difficult to predict. However, it seems that one country will determine the short-term future of the value of cryptocurrencies. What they decide is a good or bad idea could have a big impact on how many people embrace this new way of doing things.
Bitcoin price is currently above $40,000 after a drop | Source: BTC/USD chart at Tradingview.com
With the price of Bitcoin currently below $40,000, it is too early to tell what will happen to the world’s most volatile cryptocurrency. However, a panel of experts believe that despite adversity and whether you’re a speculator or an investor, has never been a better time because things can only be strengthened from here.
Related Reading | Bitcoin slows drop below $ 40K, what is the best point for a reversal?
Bitcoin is expected to prosper in the short and long term, with a price estimated at $68,942 per coin per year by Wallet Investor. This translates to an increase of nearly 300% over its five-year forecast value, which stands at &174,872 coins by 2027.
DigitalCoinPrice predicts the pillar cryptocurrency be worth $ 56,301 in 2022 and 2027 116706.
CryptoNewsZ believes that by 2025, a Bitcoin will be worth between $100,000 and $125,000. This year alone, we can expect the price of Bitcoin to reach $72,000 per coin.
Featured image from Pixabay and chart from Tradingview.com
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