Bitcoin reached $32K on Monday after significantly dropping over the weekend. The whole crypto market went south following the pioneer cryptocurrency.
The sentiments of fear are prevailing in the market as millions of dollars are wiped out. Bitcoin is down more than 50% from its all-time high. There is no strong factor indicating such a drop. However, the whole stock market is down as well.
The crypto fear and greed index showed the value of 11 which indicates extreme fear. Many hodlers including the president of El Salvador jokingly posted pictures with McDonald’s hats describing the bankrupt situation of crypto investors.
— Nayib Bukele 🇸🇻 (@nayibbukele) January 22, 2022
The bearish turn of the market was unexpected. After going sideways for a while since November last year, BTC failed to manage support of $40K in January. Bears appeared strong on Friday when the price of BTC went to $38K. Over the weekend, the market fell more and touched the floor at $32K.
Popular altcoins have also lost their value. Ethereum has fallen below $2,500 for the first time in six months. Solana’s price entered double-digit and BNB fell below $400.
Price Predictions for Bitcoin:
Bitcoin price predictions have been overly optimistic at times. Nevertheless, the unpredictable nature of bitcoin has delivered on those predictions. BTC was expected to reach $100K in 2022. For now, this prediction seems far-fetched. Crypto is taking the punches and noobs are panic selling.
Also Read: Bitcoin Holders are Buying and Accumulating instead of Selling
Some opinion leaders are pessimistic regarding the price of Bitcoin this year. For instance, Carol Alexander, the Sussex University professor, thinks that bitcoin could reach $10,000 in 2022. Thus, all the gains from 2021 will be wiped out of the market.
Is it a boom or bust for crypto? nobody knows for sure. Nonetheless, the crypto market has a history of coming back on the top after a few years of hibernation.