Bitcoin saw the April-June 2022 period as the worst quarter in the last one decade, thanks to deteriorating macroeconomic conditions across the globe.
The report from Deutsche Bank provides an interesting perspective on the medium-term outlook for Bitcoin and suggests that cryptocurrency markets have mirrored movements of the Nasdaq 100 and S&P 500 since late 2021.
However, other experts have mixed opinions on it, whereas others believe that the largest crypto asset is headed for more pain before scripting a solid recovery.
Yunometa’s founder Arijit Mukherjee seconds the thought,considering that the crypto industry is close to bottoming out. There are short-term headwinds that will impact the growth of Bitcoin and investors will factor them in the near term.
On the other hand, Mohammed Roshan, Co-Founder and CEO believes the same, but he sees more pain in the near term before a sustainable rebound supported by strong momentum.
Interestingly, Bitcoin has received a strong backing from numbers of crypto enthusiasts and veterans across the globe, who have tagged it worth $100,000 or $150,000 levels in the next few years.
Though such commentary might appear flabbergasting at current point in time, many experts do buy the notion as there can be only 21 million Bitcoins at maximum and 90 per cent of them are already in circulation.
Long-term price predictions of bitcoin are always intact but it is only a matter of time, said Roshan. “One thing we have noticed with bitcoin is that its price lags behind global crises.”
In 2020, during the beginning of the Covid spread, Bitcoin bottomed out at $3.3K and began on the upside 3-4 months later. If history were to repeat, another bull run is on the cards, he anticipated.
However, the year 2022 has not fared well for Bitcoin and the crypto market, which presumably is headed for a prolonged winter – a term used by crypto fanatics to describe the bear market.
In the last few months, crypto investors have lost notional wealth more than $2.1 trillion and the major tokens have tumbled between 60-90 per cent during the period.
The rampant crypto selloff triggered by factors such as war crisis, geopolitical worries, rising inflation, monetary policy tightening, Terra’s LUNA debacle and various crypto projects falling flat to bankruptcy.
Market experts believe that a recovery in Bitcoin would aid the entire crypto market but would also eliminate trash tokens.
“Bitcoin is the most tracked crypto asset. Its rally will make investors and crypto analysts secure in the knowledge that other coins could also grow on its back,” said Mukherjee from Yunometa.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)