Many investors have begun to look for more solid assets like gold, due to the volatility of cryptocurrencies and stocks.
The week was filled with geopolitical tension and cryptocurrencies did not show any signs of slowing. Bitcoin fell below $40,000 just once in two weeks. Ether fell 5%; Dogecoin dropped 4.5% and Shiba Inc 6.5%.
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The Bitcoin price was influenced by regulations from the United States and China in the past. It seems that investors have switched to safer stocks such as gold, instead of relying on volatile ones. This is due to the threat of war in Eastern Europe. The geopolitical tension could cause significant cryptocurrencies’ prices to decrease over there soon enough.
In Friday’s newsletterDavid Duong is the head of research for Coinbase Institutional.
Crypto performance in the last week shows us that there’s very little room for complacency regarding any of the major themes impacting this market. The open conflict in bitcoin could affect hashrates and could make it more difficult for crypto-high-beta asset assets to react.
As stocks and other growth-sensitive risk assets, cryptocurrencies are moving in the same direction as bitcoin. Bitcoin has been touted for its ability to withstand economic and geopolitical challenges globally for many years. However, this narrative hasn’t become a reality. Bitcoins had followed the same path when they were at their lowest last year. And then rebounded once they hit new highs months later – all while staying within a relatively narrow trading band.
Analysis: Analysts Project Bitcoin Price
It is difficult to forecast the value of cryptocurrency because it is so volatile. But, one country seems to be determining the cryptocurrency market’s future value in the near-term. They could decide whether this is a good idea, or a bad one. This will have huge implications on the amount of people who buy into this new method.
With the price of Bitcoin currently below $40,000, it’s too early to tell what will happen with this world’s most volatile cryptocurrency. However, an expert panel believes that despite adversity and regardless of whether you’re a speculator or investor, there has never been a better time because things can only get stronger from here.
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Wallet Investor projects that Bitcoin will continue to grow in both the long and short term. The one-year estimate for its price of $68,942 per currency is $68,942. This comes out as an almost 300% increase over their predicted five-year value, which stands at &174,872 coins by 2027.
DigitalCoinPrice predicts that cryptocurrency’s mainstay will have a value of $56301 by 2022, and $16706 in 2027.
CryptoNewsZ estimates that one Bitcoin will have a value of between $100,000 and $125,000 by 2025. The Bitcoin price is expected to rise by $72,000 this year.
Featured image taken from Pixabay. Chart from Tradingview.com