The king of cryptocurrency Bitcoin (CCC:BTC-USD) sitting on an uneasy throne today. Indeed, the currency is in the midst of a decline of more than 7%. Cryptocurrencies are showing up in red across the board, with 15 of the 20 largest cryptocurrencies by market capitalization suffering massive losses. BTC price predictions are all over the place today as investors try to understand the cryptocurrency disaster.
How low will Bitcoin go?
The most likely culprit fueling the decline today is news from the Federal Reserve and cryptocurrency investor Michael Novogratz. Novogratz stated today that he believes Bitcoin will lose between $38,000 and $40,000 in the wake of the Fed’s bond sale.
Novogratz explained in CNBC That the Fed’s “most responsible” approach to curbing inflation reduces the utility of Bitcoin as an inflationary hedge. Today’s cryptocurrency drop comes after a gloomy Wednesday that saw the spread of Nasdaq It decreases by about 3%. Investors seem to be approaching the new year with caution as the pending interest rate hike combined with the market-wide pullback expectations create bearish tension.
Bitcoin is often thought of as gold in the sense that it holds its value when other assets go down. However, the unstable times generate surprising reactions in the market. With the omicron variant continuing to disrupt business, today’s pullback doesn’t seem entirely unjustified.
Let’s see where experts think Bitcoin is headed.
BTC Price Prediction: What After Bitcoin Crash?
- CryptoNewsZ sees the major cryptocurrency ending the year at around $72,000 per coin, on the verge of doubling its current price point of $43,000. In the long-term, you expect the coin to enter 2024 at $86,000 and end the year at $92,000.
- Wallet Investor is similarly bullish on BTC. The site has a one-year forecast of $78,481 per coin and a five-year target of $203,020. Today’s gaffe appears to have done little to deter her confidence in the ancient cryptocurrency.
- Price forecasting is a bit more restrictive on Bitcoin. The platform has set an average price for 2022 of $64,336 per coin, which is a far cry from $100,000 as well as some projections’ estimates. For 2025, it will be a little more optimistic, as it has set an average target price of $201,961 per coin.
At the date of publication, Shrey Dua did not (directly or indirectly) hold any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author, and are subject to InvestorPlace.com’s posting guidelines.