Wave of selling pressure crashes bitcoin price
After reaching a historic high of $69,000 in November 2021, bitcoin faced a powerful wave of selling pressure, completely wiping out the cryptocurrency's 15-month bull run. In just 2 months, by the end of January 2022, the price of the first cryptocurrency plummeted to $35,000, retreating to levels last seen in July 2021.
Experts attribute the current bitcoin decline to the overall negative background in the markets: the Federal Reserve's tightening of monetary policy, geopolitical tensions, rising inflation. Investors prefer to withdraw from risky assets, which leads to mass crypto selloffs. Moreover, the market is growing expectations of further BTC price declines, which provokes new waves of sales.
According to analysts, in the coming months, bitcoin may drop to the $30,000 mark, or even lower. Such dynamics will seriously undermine the position of the cryptocurrency, which just recently confidently broke through to historic highs. At the same time, experts are confident that the current correction is temporary, and the long-term prospects for bitcoin remain positive.