The bitcoin price plunged to $29,000 on the 11th. Major altcoins such as Ethereum and Ripple are also on the decline. Although there is no significant and dramatic downtrend, it is true that the flow of the entire cryptocurrency market is gradually sinking. Crypto winter is coming.
Inflation fears are engulfing the market. The U.S. Department of Labor reported on the 10th (local time) that the consumer price index (CPI) rose 8.6% in the month of last year, raising concerns over inflation.
The European Central Bank (ECB) announced its first rate hike in 11 years amid the US Federal Reserve’s aggressive rate hike, raising fears of inflation and stagflation.
As the market’s fighting spirit itself has cooled down due to the Terra-Luna incident, geopolitical crises such as the Ukraine war are also on the rise. The general consensus is that the possibility of a rebound in the price of cryptocurrencies such as Bitcoin for the time being is low.
However, there are still hopeful analyzes from a long-term perspective. Bithumb’s ‘Bithumb Economic Research Institute’ published the first report “Checking Macro Variables That Virtual Asset Investors Need to Know” on the 8th since its establishment in May. It was estimated that it would be in the range of $10,000 to $300,000.
According to the analysis of the report, the top of the market cap of the previous halving forms the bottom of the market cap of the next halving, and the price of Bitcoin has been rising in a cascading fashion. In the report, Lee Mi-sun, head of the research center at the Bithumb Economic Research Institute, said, “Considering the past pattern of a cascading rise in Bitcoin price one year before the halving, the current price can be a good buying section for mid- to long-term investors.”
Prior to this, there was a forecast that Bitcoin would fall to $8,000, but there are still differences of opinion, such as JP Morgan predicting an increase in the Bitcoin price. Of course, the possibility of a crypto winter is high, but it means that voices of hope have not been ruled out yet.
Send articles on social media