Tech

Bitcoin can still fall much more

If 2021 was, at least in part, the best year in Bitcoin history, 2022 aims to be the worst. And it is that if the year started down and with great uncertainty around it as the months have passed, the situation has only worsened, with its price breaking floors that were considered more than consolidated, and dragging other cryptocurrencies and other cryptoactives to what has been called the cryptocrash.

It would be unfair to blame Bitcoin exclusively for what has happened in recent months. For example, by now it is indisputable that a huge bubble was generated around NFTs and a boom in the creation of new cryptocurrencies, as a direct consequence of the enormous demand for crypto assets by many investors interested in them. The NFT bubble already seems to have burst (although it could still lose even more air) and hundreds of cryptocurrencies and thousands of other crypto assets have suddenly gone down the drain of reality.

Some analysts are still optimistic about Bitcoin’s possible run during the second half of this year, with some voices pointing to the fact that it could climb to $28,000 by the end of the year. Nevertheless, common market analysts are increasingly pessimistic about itpredicting that the coming months will be quite bad for investors who have decided to keep their investment in Bitcoin.

Thus, as we can read on Bloomberg, 60% of the analysts consulted expect Bitcoin’s short-term returns to be negative, to the point that They see it as likely that the cryptocurrency can close 2022 with a price of around 10,000 dollars. An unthinkable value just over eight months ago, when it reached its historical maximum by standing very close to 60,000 euros, after a second semester, that of 2021, which was also a heart attack.

At that time, with Bitcoin trading at highs, we could hear quite a few voices stating that the ceiling of $100,000 was feasible, and that it could even mark the entry of many companies into the crypto economy. Some expectations that, over time, have been totally erased, and a cryptocurrency that is now in a complicated situation, in which its price is being corrected in an enormously abrupt way, perhaps looking for its “natural” positionsomething terribly complex, since there are no previous references that can be of help to determine what the “real” value of Bitcoin is.

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