Analysts: Bitcoin Won’t Recover Until 2024

Bitcoin May Need More Time to Fix Itself

Analysts: Bitcoin Won’t Recover Until 2024

We’re in a crypto winter. There’s no denying it. The fact that bitcoin could lose over 70 percent of its value in just under a year is crazy. Many thought that bitcoin and other forms of crypto were unstoppable and likely to reach prices that could never have been believed. While this happened, those prices are considerably lower than what most diehard traders were expecting.
Bitcoin May Need More Time to Fix Itself
Now, it looks like things are about to get worse as many analysts believe the crypto winter that we’re currently enduring isn’t likely to begin showing signs of ending until the year 2024. At the time of writing, more than $2 trillion has been wiped off the crypto slate as the space has lost loads in valuation. As inflation has grown rapidly, the Fed has had no choice but to give in and increase rates as a means of trying to fight the ongoing spikes witnessed in food and gas prices.
This has ultimately come back to bite assets like bitcoin in the butt, and many are suffering due to the harsh economic downturn countries like the U.S. are witnessing. The idea that bitcoin could potentially serve as a hedge against inflation has been challenged, and the currency, in many ways, has failed to live up to its hype from two years ago.
Solana Labs co-founder Anatoly Yakovenko explained in a recent interview why he thinks the current state of the market could last into the year of the next presidential election. He says:
Looking at macro stuff, my guess is there’s probably 12 to 18 months more of these brutal Fed rates going up, but there is an end to it, and just like the last bear market, a lot of teams built and focused on product-market fit and really tried to build amazing products. A lot of those succeeded, I think, in a very dramatic way.
Things Could Be Slow
We are very close to the midterm elections of the U.S., and many governors and members of Congress are about to see their positions challenged by newcomers within the next few days. Faud Fatullaev – chief executive of web3 ecosystem We Way – said this isn’t likely to help bitcoin reach new highs, commenting:
While the current momentum might push the coin to the $20,500 to $21,000 range in the next few days, the chances that this growth will be sustained in the mid-term[s] are uncertain. It is somewhat difficult to pinpoint what is fueling the current growth trend in what appears as a natural retail buying momentum for the premier digital currency. However, investors and traders will need to keep in mind that the nascent asset class still has a tremendous correlation with the broader financial market which also still has a lot of headwinds ahead.

Tags: bitcoin, bitcoin price, crypto winter

Leave a Reply

Your email address will not be published. Required fields are marked *

New Brokers
2.8 rating
Buy & sell Crypto in minutes
3.0 rating
Note: Investing involves risks. You can lose your deposit. We advise you to only invest in financial products which match your knowledge and experience.
2.0 rating
Interactive Brokers attracts active traders with low per-share pricing, an advanced trading platform.
4.3 rating
eToro is the world’s leading social trading platform, with thousands of options for traders and investors.
AdonFinance
Risk Warning: The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory or other services by AdonFinance. In addition, the content of the website offers no opinion with respect to the suitability of any security or any specific investment. Trading foreign exchange, stocks, cryptocurrencies and commodities is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against traders. Before any investment with any broker you need to carefully consider your targets, previous experience, and risk level. Forex trading can result in the loss of your money, as a result, you are expressly cautioned that you should never invest or trade with money that you cannot afford to lose. For the avoidance of doubt, AdonFinance's service provides Brokers reviews in the Financial market. AdonFinance, its subsidiaries, agents or affiliates will assume no responsibility whatsoever for your trading activity. © Copyright 2021 AdonFinance