For the cryptocurrency market, 2022 was a difficult year. A bear trend has plagued the crypto market for a while. Bitcoin’s main coin is down nearly 70% since November 2021, when it hit its ATH. Still, the market fear has not ruined the investors’ interest in Bitcoin. The data shows that over half of the investors still hold their BTC investments even through crypto winter.
TipRank has found that 62% have not sold any of their BTC collections for at least one year. The site data for September 1 also shows that 32% sold their BTC investments in the 12 previous months.
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Investors were under increasing selling pressure as the market fell. This trend continued for some time. Glassnode, a blockchain research company, recently reported that BTC deposits to exchanges have been declining in value over the past seven days. reducedTo the 2-year lowest at 1,921 BTCs.
The crypto winter surpasses the crypto price declines of 2017-2019. While the bubble burst caused the downtrends in the past, the bearish current trend was due to macro-economic factors.
Market sentiment was generally disturbed by the TerraLuna failure and the 22% Nasdaq selling-off. Inflation was then controlled by the U.S. Federal Reserve’s hawkish approach. The Fed has increased rates every year since. As the Fed increases rates, further market sell-offs occur, reducing the price of goods and services.
Bitcoin Price Analysis
Bitcoin’s current position of over $25,000 is difficult to maintain in the market environment. Fed’s remarks still remain a major concern stopping the BTC prices from jumping. At the time of writing, BTC’s price stands at $20,065, down by 0.70% in the past 24 hours.
Nevertheless, Bitcoin is currently navigating the inflation environment in the context of the Feds’ unfavorable remarks. BTC’s price dropped below $20,000 due to an increase in Feds rates. But, Bitcoin soon recovered, reaching the $25,000 threshold.
The BTC price has remained low in spite of the Fed’s latest activity.
BTC Still a Hot Topic for Analysts
Some industry professionals see this market as an opportunity for cryptos to be bought.
Mike McGlone, the senior commodity strategist at Bloomberg Intelligence, opined that assets like BTC and gold would see some resistance and price rally in the year’s second half. McGlone noted;
“If Stocks Are Going Limp, Bitcoin, Gold and Bonds Could Rule 2H — The propensity for Bitcoin to outperform most risk assets and gold most commodities, may play out in 2H, particularly if the stock market keeps succumbing to FederalReserve jawboning.”
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Others believe BTC needs to be stable for it to continue its recent gains. Tallbacken Capital Advisor’s CEO forecasted more price drops for Bitcoin. According to him, the Bitcoin price will touch $15,000 and the long-term momentum has become less stable.
Featured image taken from Pixabay. Chart from TradingView.com