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- Insights
- Cryptocurrencies
- Stocks
- White Papers
- Industry
- Geography
The cryptocurrency is taking the geopolitical hits on its face in 2022. Although this has never happened, investors are not surprised about the Bitcoin and other digital tokens' price fall. For three months straight, BTC has been encountering constant hits. When things looked prosperous in February 2022, Bitcoin's price again tumbled over the Russia-Ukraine conflict. Currently, experts predict that BTC might be heading to the US$28,000 resistance level next.
Ever since Vladimir Putin pushed Russia's military force into Ukraine, the global economy has been threatened. Including the cryptocurrency market, every financial ecosystem is facing back-to-back hits from this geopolitical tension. Bitcoin is one of the most suffering assets during the recent conflict. Bitcoin's price has plunged to as low as US$32,000 last month, pushing other altcoins prices to massive falls and questioning the existence of the cryptocurrency market. BTC is now roughly 50% down from its all-time high in November. But the price plummet has literally questioned the whole existence of the cryptocurrency market. Digital tokens are decentralized and work independently. Its sole existence is to not be shaken by the changing circumstance. But for the first time, BTC's price is suggesting otherwise. After threatening to start a 'crypto winter', experts say that Bitcoin could plunge to as low as US$28,000.
Probably not! Despite the ongoing crisis, experts say that there is very little chance that Bitcoin's price might crash. Although the Russia-Ukraine conflict on the cryptocurrency market is unexpected, it shows no sign of wiping out the decentralized ecosystem. But this is not the only reason digital tokens are facing a plunge in recent times. Since the Federal Reserve's tightening policy news came out, Bitcoin was facing uncertainty. With the possible interest rate rise, the situation got even worse.
But this doesn't mean Bitcoin is going to zero. Even when the global scenario is worsening and taking a toll on the cryptocurrency market, the underlying technology is being cherished. However, it is creating a disconnect that nobody expected. From the very beginning, the success of Bitcoin paved the path for blockchain to grow. Today, the technology has reached an extent where advanced features like DApps, smart contracts, NFTs, etc are taking distinct shapes. Therefore, the growth of cryptocurrency is divided across many applications.
After encountering massive cryptocurrency blows, analysts are coming up with technical analysis to figure out where Bitcoin will find a support level. Currently, Bitcoin is on the liquidity level between US$37,000 and US$38,000, indicating that people are still interested in it. However, it is struggling to get a stable ground at US$40,000, which is very crucial.
According to some experts, there are two major test levels namely US$33,000 and US$28,000. If Bitcoin's price falls below the US$28,000 mark, it might clearly indicate a 'crypto winter' ahead. However, the last time we encountered a crypto winter, the situation was even worse. Within 5 months, BTC's value plummeted by more than 80%. But enthusiasts say that such a situation is very unlikely.
Bitcoin investors should first embrace the fact that digital tokens are extremely volatile and they might serve anything on your plate. Ruinous and government policy changes aside, investors can expect that the prices of Bitcoin and other digital assets will increasingly move in correlation with the prices of traditional assets. Although unfamiliar cryptocurrencies might now follow this, top digital tokens like Bitcoin and Ethereum have a high chance of opting for the correlation.
But as told before, Bitcoin reaching zero or hitting rock bottom is impossible, at least for the time being. However, more regulations and geopolitical changes might have a massive impact on the whole cryptocurrency market from now on.
