Based on recent developments in the cryptocurrency space, an analyst claimed that the price of Bitcoin will fall to $9,000. This year, under the influence of various factors, the digital currency market is going through a difficult time. Bitcoin has lost about 80% of its value since its all-time high.
Last year, the digital currency industry was at its peak and Bitcoin was also experiencing an upward trend. During this time, there was a lot of positive news. The news of the launch of the Bitcoin-based ETF caused the price to reach an all-time high of $69,000.
In the following months, however, the situation began to change. Central banks changed their macro policy. The policy of printing and supplying new money in the market changed to increase the bank interest rate. In this way, they were able to deal with their self-inflation.
Along with the change of monetary policy in the world, Russia also made a military attack on the territory of Ukraine. Most macroeconomic factors acted against the direction of risky assets. In these difficult conditions, digital currencies also faced more downward pressure. The formation of major crises in important parts of the digital currency industry, which began with the collapse of the Terra network, made the situation even worse.
Forecasting the price of Bitcoin to double digits; price of Bitcoin will fall to $9,000
Following that, several different platforms suspended the withdrawals of their users. Some asked for emergency funds and some were forced to declare bankruptcy.
During the downturn, FTX group was known as the savior of these bankrupt platforms; A collection that is now considered a bankrupt exchange.
FTX and Sam Benkman Farid’s names were seen in all the offers to buy bankrupt collections. Few people would have imagined that FTX itself would suffer the widespread bankruptcy of the digital currency industry. When it became clear that the FTX group, which was the savior of bankrupt platforms, could no longer save its customers, Bitcoin experienced another sudden fall.
The price of Bitcoin reached its lowest level in the last two years, below $16,000. With this drop, the magnitude of Bitcoin’s fall from the all-time high of $69,000 increased to 80%.
Cryptocurrency analyst DonAlt on Twitter has warned that Bitcoin’s downfall may not be over yet. By comparing the price drop in the current downward cycle with the previous two cycles, he said that Bitcoin could fall to $9,500 by imitating the cycle of 2014 and 2015, and to $11,000 if the conditions of 2018 repeat.