Current Bitcoin Market Situation
The cryptocurrency market has been experiencing a significant correction in recent months. Bitcoin, which accounts for about 40% of the entire cryptocurrency market, has already plummeted 38% from its all-time high recorded in November 2021. However, according to analysts at the investment firm Galaxy Digital, this is far from the limit - the price of the main cryptocurrency may drop below the psychologically important level of $60,000.
Why Could Bitcoin Continue to Decline?
Galaxy Digital analysts cite several key factors that could put additional pressure on the price of Bitcoin in the near future:
- Tightening of the US Federal Reserve's monetary policy. The regulator intends to raise key interest rates, which could lead to an outflow of investments from risky assets, including cryptocurrencies.
- Geopolitical instability. The escalation of the conflict in Ukraine and the associated economic risks are also negatively impacting investment sentiment.
- Loss of confidence in cryptocurrencies. A series of major scandals in the crypto space, including the bankruptcy of the FTX exchange, is undermining investors' faith in the reliability of digital assets.
In these conditions, Galaxy Digital analysts forecast that Bitcoin could drop below the key support level of $60,000, which would be a serious blow to the entire cryptocurrency market.
Expert Opinion
Undoubtedly, the current situation in the cryptocurrency market looks extremely unstable. The main risk factors cited by Galaxy Digital analysts can indeed put serious pressure on the Bitcoin price in the near future. However, on the other hand, cryptocurrencies have proven themselves to be highly volatile but growing assets in the long run. Therefore, we cannot rule out the possibility that after another correction, Bitcoin will return to confident growth, especially against the backdrop of a gradual normalization of the situation in the global economy.