Bitcoin is the world’s largest cryptocurrency and the first crypto to appear on the market. It is the first decentralized currency and is widely traded across the globe. Bitcoin is a peer-to-peer digital currency, meaning that all transactions occur directly between equal, independent network participants without the need for an intermediary to permit or facilitate them.
The Bitcoin price is prone to volatile swings, making it popular for traders to speculate on. Bitcoin slid to a three-month low, and today it is trading at $19 038 49 USD. CoinMarketCap ranks #1, with a live market cap of $364 795 982 USD, and it has a circulating supply of 19160968 BTC coins and a maximum supply of 21 000 000 BTC coins.
What caused Bitcoin’s value to drop?
Since the beginning of 2022, Bitcoin has gone through a challenging and tumultuous period. Like any other traded asset, Bitcoin’s price is affected by supply and demand. However, the occurrence of certain global fundamental events could have a relation to the value of Bitcoin. Experts say that the cause for Bitcoin’s drop-down is because of a more comprehensive global climate. It is not only the crypto world experiencing such a hush recession. During the US Federal Reserve meeting, it was announced that it would raise interest rates by 0.7. For example, Bitcoin experienced a massive drop after announcing the latest hike in the key interest rates amid higher inflation and macroeconomic headwinds; raising the target rate by 75 basic points (bps) is the fifth rate increase this year. Experts point to a potential recession, rising interest rates, and the war between Russia and Ukraine causing the price drop. Crypto investors have observed a 70% drop in value since its all-time high above $68 000 in November of 2021. It is said that the Ethereum Merge that happened last week also played a role in the Bitcoin price drop.
September 2022’s effect on Bitcoin
History has a way of repeating itself, and in the crypto community, September has been a poor performance month for Bitcoin. Over the last nine years, Bitcoin only had two positive Septembers. On average, Bitcoin loses nearly 6% of its value in September, and other cryptocurrencies also suffer the same fate. This year is no different from the further price drop in September; since the start of the month, a decline in Bitcoin seems to be the order of events. Even with the recent decrease in price, Bitcoin is still more than twice as valuable as it was just a couple of years ago.
Bitcoin’s prediction for the remainder of 2022
Three months ago, Bitcoin was sitting at $20, 751.48, one month ago at $20,271.32, and one week ago at $19,437.16. Bitcoin’s price is challenging to predict and even more open to market factors than more established asset classes. Many experts say that Bitcoin is on its way to passing the $100,000 mark, and the thing about Bitcoin is that it always bounces back. Bitcoin prices could be working on forming an Adam and Eve double bottom. The same bottom formation was put in the 2018 bear market bottom.
What can turn things around?
According to reports on the Immediate Edge Official site, “If people owning Bitcoin hold on to it, this can turn things around as it has happened before.” Crypto market monitors will likely advise people that now is a great time to buy while it is cheap because it will turn around. Additionally, stories from those who have gained wealth in a short period and high-profile celebrities posting about Bitcoin can help attract further investment to aid the digital currency in its bounce-back. Elon Musk, founder and CEO of Tesla, posted: “As a general principle, for those looking for advice from this thread, it is generally better to own physical things like a home or stock in companies you think make good products than dollars when inflation is high. I still own & won’t sell my Bitcoin, Ethereum, or Doge, FWIW.” Layah Heilpern, an author of Undressing Bitcoin, also said that “the lower bitcoin goes, the more I’m buying.” Such social media awareness from prominent figures can certainly help in turning things around for Bitcoin.
