Excellent John K. Kumi is a cryptocurrency and fintech enthusiast, operations manager of a fintech platform, writer, researcher, and a huge fan of creative writing. With an Economics background, he finds much interest in the invisible factors that causes price change in anything measured with valuation. He has been in the crypto/blockchain space in the last five (5) years. He mostly watches football highlights and movies in his free time.
Recently, CoinGecko data disclosed that $2 trillion has been wiped off the market value for cryptocurrencies since last year.
Bitcoin is currently trading around $20,555 after sinking below 19,000 for the first time since December 2020. Following the quick reversal, Tron blockchain ecosystem founder Justin Sun hinted that the worst ever condition the market could face is already in the past. However, a recent Wall Street report on Bitcoin price expectations says otherwise.
According to the latest Bloomberg MLIV Pulse survey, the market has not yet bottomed out as 60% of the respondents believe that the asset is heading down to $10,000. That being said, 40% of the respondents also believe that Bitcoin would bounce back to $30,000. The survey which considered the prediction of investors showed a strong skepticism among them regarding the digital asset.
Recently, CoinGecko data disclosed that $2 trillion has been wiped off the market value for cryptocurrencies since last year. The recent financial crisis and the interest rate hike by the Federal Reserve to control the rising US inflation has been the main reason for investors triggering the “bearish mindset” in the market. It was also reported that the Central Bank is on the verge of announcing another 75 basis point rate hike, and is expected to have a negative implication on risk assets like Bitcoin.
The confidence level has also remained low since the Terra ecosystem collapses sending almost all digital assets plummeting. In a report, retail investors have been more cautious with nearly a quarter of them declaring that Bitcoin is currently worthless compared to institutional investors. If the survey is anything to go by, then the Bitcoin price may likely drop by another 43%.
Scott Minerd, global chief investment officer at Guggenheim Partners previously predicted after Bitcoin had broken another $30,000 support level that there is a lot more room for a downside. According to him, $8000 is the ultimate bottom for Bitcoin.
“When you break below $30K consistently, $8K is the ultimate bottom. So I think we have a lot more room to the downside. “Ethereum, Bitcoin will be survivors…I don’t think we have seen the dominant player in #crypto yet,” said Scott Minerd.
Mike Novogratz, CEO of Galaxy Digital who has been very bullish on Bitcoin also admitted that the asset could experience a huge drop in the short term.