Bitcoin Will Crash
Bitcoin will crash. There are many factors that will impact the answer to this question. If inflation continues to plague the global economy, the US government is likely to raise interest rates. The Federal Reserve will also take harsher measures to address the problem. It will likely impact the crypto and commodity market. The timing of industry news may play a role in answering this question. A positive news story about bitcoin can cause a price spike. However, if bad news is reported, prices could plummet.
One scenario is that there will be no consensus within the Bitcoin community on the issue. Let’s say, for example that one part of the community wants more bitcoins than 21 million. BTC might continue to drop if there is a hardfork and both networks remain strong. But, there’s no reason to think that the price will crash. It is possible for the market to rebound and move higher.
The price of Bitcoin depends on demand and supply. If demand is greater than supply, then the price will go up. This is usually after the Bitcoin halves, which some investors see as artificial inflation. But, once the maximum number is issued, Bitcoin’s price will be less volatile. What will happen to bitcoin’s price when it crashes? If we continue to follow the trends of dotcom bubble, Bitcoin could see a dramatic drop in price by 2022.
It is difficult to determine the exact reasons for the decline in the cryptocurrency market. Bitcoin is a volatile asset and a crash could wipe out 10% to 20% of its value. However, the cryptocurrency market is susceptible to crashes. Corrections are a part of the market’s normal cycle. It’s often the result of severe circumstances. Investors are now choosing less risky assets.
Bitcoin will likely rise in the short-term. The price of Bitcoin has declined since 2018’s beginning, but we can expect it to rise again in 2022. BTC/USD will break the $60,000 threshold and reach $63,748 at the median by the end. This will mean that Bitcoin’s value will increase by more than 275% in the next three-years. In 2025, the Bitcoin price will reach $156,000.
Although bitcoin has been around since 2010, it really took off in 2017 when it was gaining popularity. Chinese miners were keen to benefit from the Bitcoin halving. Chinese miners made up half of all mining operations. The lack of regulation created an environment that was conducive to market manipulation. A slight bear market was also caused by the Federal Reserve’s reduction of its balance sheets. The manipulation of the market drove bitcoin’s perceived cost higher, creating a bubble.