Posted on August 20, 2022
Bitcoin to crash?
Is Bitcoin going to crash? This question is dependent on many factors. The US government will likely raise interest rates and take tougher measures to stop inflation if the global economy continues its downward spiral. This will likely have an impact on the cryptocurrency and commodity markets. This question could be answered by the timing of the news. Positive news about bitcoin could lead to a price rise. If there are negative news about bitcoin, it could cause a price surge.
One possibility is that the Bitcoin community won’t reach a consensus. Imagine, for instance, that a portion of the community wants to see bitcoins reach 21 million. If both networks are strong and a hard fork takes place, then BTC could continue to fall. There is no reason for the price to crash. The market could rebound and move higher.
Demand and supply are also factors that influence the price of Bitcoin. The price of Bitcoin will rise if demand exceeds supply. This happens most often after the Bitcoin halving (which some investors consider artificial inflation). The price of Bitcoin will drop once the maximum amount of Bitcoins has been issued. When will bitcoin crash? We might see a huge drop in Bitcoin’s value in 2022 if we follow the trends from the dot-com boom.
It’s difficult to say for sure why the cryptocurrency market fell. Bitcoin is volatile and can be destroyed by a crash. Crash can happen in any market, but corrections are an expected part of the market cycle. A crypto market crash is usually caused by far-reaching circumstances. Investors have started to choose less risky assets as a result.
Bitcoin is expected to increase in the near term. Although the price of Bitcoin has fallen since 2018, it is expected to rebound in 2022. The BTC/USD should break the $60,000 barrier to reach a median price of $63,748 by year’s end. The next three years will see Bitcoin grow by more than 275%. The price of Bitcoin is expected to reach $156,000 by 2025.
Bitcoin has been around for 10 years, but it only really started to gain momentum in 2017. Chinese miners wanted to profit from the Bitcoin halving. Half of all mining activity was done by Chinese miners. Market manipulation was possible because of the lack of regulation. The Federal Reserve also reduced its balance sheet, creating a bear market. Market manipulation caused bitcoin’s perceived price to rise and created a bubble.