Will Bitcoin go back up? What experts are predicting for the crypto's price after dramatic market crash – iNews

Bitcoin’s price remains stuck at around $30,000 (about £24,000) after crashing at the beginning of May.
The world’s largest cryptocurrency is currently valued at $29,300. Over the last week it has displayed a pattern of climbing back over $30,000 before dipping below that figure again.
It spent the majority of 2022 hovering between $35,000 and $45,000, reaching a high of around $47,500 at the end of March.
Its current price is well under half the record level of $68,000 it reached back in November 2021.
Here’s what experts are predicting for Bitcoin going forward.
Investors appear to be moving away from cryptocurrency and towards less risky investments in the face of global inflation.
Crypto has been hurt further by a sharp drop in US stock prices.
Analysts at crypto exchange Bitfinex said: “Spiralling levels of inflation have left global financial markets staring into the abyss as the prospect of a global recession looms large.
“This is leaving all assets that have benefited from more than a decade of accommodative monetary policy from central banks vulnerable to a correction as interest rates rise.”
Morgan Stanley says the interest of institutional investors in cryptocurrency makes it more sensitive to changing interest rates, and makes it behave more like the traditional stock market.
“Retail investors are no longer the dominant crypto trader. The largest proportion of daily crypto trading volumes is from crypto institutions, much of which comes from them trading with each other. For example exchanges, custodians, and crypto funds,” the company wrote in a note.
“Retail traders were dominant around four years ago, when Bitcoin traded below $10k. We think the increased involvement of institutions, which are sensitive to availability of capital and therefore interest rates, has contributed in part to the high correlation between Bitcoin and equities.”
Bitcoin and other cryptocurrencies have also felt a knock-on effect from the collapse of Luna, the so-called “stablecoin” that saw its value plummet from over $100 to a fraction of a cent.
As ever with cryptocurrency, the future is uncertain. One factor that could provide hope to crypto investors is that big players are starting to join the party.
On Wall Street, JPMorgan Chase, Morgan Stanley and Goldman Sachs are among the firms that now have dedicated cryptocurrency teams. Meanwhile, mainstream hedge funds, managed by the likes of Alan Howard and Paul Tudor Jones, are pouring billions into digital currencies.
Paul Veradittakit, partner at digital asset manager Pantera Capital, told Bloomberg: “Compared to 2018, there are more institutional investors with exposure to crypto and most see this as a buying opportunity.”
Kate Rouch, chief marketing officer at Coinbase, is bullish about crypto’s future.
“Volatility is painful, and can be scary,” she wrote in a blog post. Nobody likes to lose money in the short term – whether in crypto, or the stock market more broadly.
“That said, volatility is also natural for emerging technological breakthroughs like crypto.
“At Coinbase, we’re inspired by the long-term view and the spirit of those who continue to keep innovating no matter the external environment.”
Noelle Acheson and Konrad Laesser of Genesis Global Trading wrote in a note on Friday: “Bitcoin is likely to hover around $29,000 to $31,000 for the next couple of weeks.”
Michael Saylor, chief executive of Microstrategy, has predicted Bitcoin will eventually go “into the millions”.
He told Yahoo Finance: “There’s no price target. I expect we’ll be buying Bitcoin at the local top forever. And I expect Bitcoin is going to go into the millions. So we’re very patient. We think it’s the future of money.”
People invest at their own risk and cryptocurrencies are not regulated by British financial authorities.
All crypto investments are risky, but meme coins like Shiba Inu are particularly volatile, and you should be prepared to lose everything you invest.
The Financial Conduct Authority (FCA) warned in January: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, has previously explained the risks to i.
She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”
All rights reserved. © 2021 Associated Newspapers Limited.


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