Experts Wonder – Will Digital Currencies Go Down Further in Pricing?
Everything has been going downhill for the world of virtual currencies during the last couple of months! The coins show an inclination to slip into a bullish trend, then suddenly enter a bearish run. Naturally, this kind of volatility in the crypto marketplaces is making investors jittery. For more information about bitcoin trading, you can visit bitcoin-up.
Possible Arrival of the Crypto Winter
The volatility that began in May 2022, has carried over to the next month too. Several cryptocurrencies, including big names, such as Ether, Bitcoin, etc., have revealed drastic reductions in prices. Experienced investors predict that the situation could worsen over the next few weeks. It could even result in stakeholders selling off their risky digital assets.
After all, Bitcoin went below $20k, that is, dropping by more than 30%. Even Ether showed a tremendous price drop, going below $1,000. When the Federal Reserve hiked the interest rate by 75 basis points, the stock markets fell but seemed to be recovering. However, the same could not be seen in the crypto markets. A senior market analyst at OANDA, Edward Moya, commented that investors would view this as a troubling sign.
He also opined that Bitcoin could be in trouble, despite holding onto the price level of $20,000. Obviously, cryptocurrency traders were not excited by Wall Street’s broad rally. This rally had been a follow-up to the announcement made by the Federal Open Market Committee (FOMC).
It is why virtual currency experts are predicting the arrival of crypto winter. It refers to an extended period when the prices of digital currencies continue to remain very low. Therefore, Bitcoin could go below $20k, or even lower. In other words, the prices of digital currencies could dip by 15%, or even lower, thanks to the rapid tumbling of the ever-popular Bitcoin and Ether.
Opinions of Experts
As someone, who knows much about digital currencies, and can even educate others about them, Wendy O believes that Ether (ETH) could reach a price level of $750, soon. It is because the coin stands at a price that it had displayed at the beginning of 2021. Regardless, it had gone up to approximately $4,800 in November 2021. However, it is all too possible that the rate may drop by as much as 85% during this bear run. Hence, the figure of $750. After that, Ether may totally bottom out.
This entrepreneur focuses on Bitcoin. People listen to her, for she is the author of the well-known ‘Cryptocurrency Investing for Dummies.’
Her prediction is that Bitcoin’s pricing could touch a severe low, such as $11,000. With investors drawing back from experimenting with risky assets, the crypto marketplace is on a bearish run. It is not helping that stock markets are feeling shaky, inflation is on the rise, and the public fears the advent of recessions. Furthermore, the Federal Reserve is eager to hike interest rates.
Bitcoin’s price has already dipped by nearly 70%, from a glorious high of $68,000.
She is a venture capitalist. She is also the launcher of Delta Blockchain Fund. This expert also concentrates on Bitcoin. However, she believes that the coin could go down to $14,000, unlike K. Danial. As for Ether, she expects it to hit $500. It is because no meaningful rally can take place during the 12-18 months of the crypto winter.
Additionally, investors are so worried about a recession, that they are keen to liquidate risky assets. It has not helped that TerraUSD and Luna collapsed in May 2022. Furthermore, Celsius, the lender, has halted withdrawals. This has dented the confidence of investors even further. Already, there is a sell-off in action in the broader crypto space. Therefore, the prices of digital currencies are bound to reduce even further.
To Invest Or Not to Invest
It is a dilemma for investors, However, those, who have been in the crypto arena for a long time, state that there is no ‘perfect’ time for investing in digital currencies. Maybe, the time of a bearish run, when prices are dipping, could be a good time to hoard cryptocurrencies. At the same time, buyers must obtain professional advice regarding risk tolerance, saving for emergencies, etc., before acting. Above all, it would be good to invest small, and not go overboard with purchases.
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