The cryptocurrency market is relatively young compared to the stock and currency markets. Crypto is only now entering its full decade of active trading. The most popular cryptocurrency is riding one of its longest bearish trends. If you trade Bitcoin as a beginner or export, you should check for news that impacts prices. You’ll find so many differing opinions on the future of Bitcoin while analysing the market, but your decisions should ultimately be based on your analysis. This article explores some of the popular opinions that crypto traders hold about Bitcoin.
Bitcoin Will Close 2022 Bearish
Despite hitting an all-time high price in November 2021, Bitcoin has now slipped to below $17,000, continuing a strong bearish trend that started on 3 January this year, when Bitcoin dipped below $52,000. Since then, the coin has experienced sustained bearish pressure, seeing its price drop from $46,000 to just above $16,000 today. Many traders believe Bitcoin will close on a strong bearish trend in 2022. This is because of certain factors and price history.
Bitcoin has a history of closing December in a bearish trend, extending into January before the bulls pick up. Whether that will happen this year or not remains to be seen. Bitcoin requires certain important events to push its price up for investors who prefer to hold the coin.
Bitcoin Will Recover in 2023
Despite its heavy bearish price, many investors are confident that Bitcoin will recover its price in 2023. Again, this is supported by the asset’s price history. January and February are historically good months for Bitcoin, as it tends to become bullish. For example, after two bearish months, Bitcoin gained between January and February 2020. Again, the price increased between January and April 2021 after four final bearish months in 2020.
There are no indications of a bullish market, but historical data points to it, and that’s enough for many investors.
Another factor driving this opinion is that many Bitcoin whales still hold their assets and have not sold them to cut losses. This is a strong factor, despite the decreased confidence, as shown by the fear and greed index.
Crypto Adoption Will Drive Bitcoin’s Value Higher
Crypto traders and those in the industry understand the impact of demand on the price of an asset. This is a basis for the confidence that Bitcoin’s price will rebound and even increase. Many investors are confident that Bitcoin and other cryptocurrencies will see increased adoption, driving up their value. Many countries are already working on digital versions of their currencies, called central bank digital currencies (CBDCs), but their impact may be similar to El Salvador’s adoption of Bitcoin as a legal tender.
Increased adoption will increase the demand for cryptocurrencies, causing the price to go up. But much depends on the regulatory status of cryptocurrencies in countries. As of now, many countries still need to regulate the crypto industry but are working on it.
Bitcoin Will Surpass Its Current All-Time High Price
At the height of the Bitcoin boom, some popular figures predicted its price would hit $250,000 someday. Some others predicted a modest $100,000, but the coin has hit above $69,045, its all-time high price. Although the price has fallen massively since then, many investors believe Bitcoin will reach that all-time high again, but it is difficult to predict whether this will happen. The price of Bitcoin and other cryptocurrencies can be highly volatile and is influenced by various factors, including market demand, regulatory developments, and global economic conditions.
It is possible it could reach this high in the future, but it is also possible that it may not. Some experts believe that this crypto has the potential to continue growing in value over the long term, while others are more sceptical about its prospects. Ultimately, its future value will depend on various factors, and it is impossible to predict with certainty what will happen.
The Bear Market Has Reduced Market Noise
One of the main drivers of market noise is the media, which tends to focus on the more sensational aspects of the market and can create hype around certain assets. In a bear market, there is often less media coverage of the asset and less interest from the general public, which can reduce market noise.
Another factor contributing to market noise is the activity of retail investors, who may be more prone to getting caught up in the hype and speculation of a bull market. During a bear market, retail investors may be less likely to trade the asset, which can also reduce market noise.
Overall, the bear market for Bitcoin has likely led to a decrease in market noise surrounding the asset. This can be a positive development for more serious, long-term investors who are less influenced by hype and speculation and more focused on the asset’s fundamental value.
Conclusion
The crypto market is a widely-discussed topic among investors, with Bitcoin leading the discussion most times. The coin has experienced a massive price fall over the last few months, triggering differing opinions about its future. As a Bitcoin trader, you can always take advantage of the price’s direction through proper analysis and trading. You can trade Bitcoin’s volatility to your advantage.
