Bitcoin: The Bull Market Will Have to Wait – Analyst Predicts Significant Drop
Bitcoin, the world's most prominent cryptocurrency, fell to a three-week low on Friday, breaking free from a narrow price range it had been stuck in between $22,500 and $22,200 since March 3.
The decline came after U.S. Federal Reserve Chairman Jerome Powell suggested on Tuesday that while inflation had fallen in recent months, it was still far from the central bank’s target of 2%.
Powell’s comments led investors to believe that the Fed would likely continue pursuing more aggressive monetary policies than expected.
As a result, Bitcoin’s value, often seen as a hedge against inflation, dropped by more than 12% to $19,628 during the Asian trading session before partially recovering to around $19,958.
Gareth Soloway, Chief Market Strategist of InTheMoneyStocks, warned that Bitcoin and other cryptocurrencies could experience further declines due to the Fed’s policies and ongoing industry instability.
Soloway believes that Bitcoin will reach a high-end target of $13,000 or a low-end target of $9,000 and that it will take longer than previous bear markets for Bitcoin to enter a bull market again.
At the time of writing BTC is trading at $20,100 after a 1% decrease in the past 24 hours.
Soloway also noted that the market was facing significant headwinds that investors should be careful of, including the potential for further rate hikes by the Fed.
READ MORE: Why did Bitcoin Drop Under $20,000?
He referenced the unique nature of the current market drivers, stating that it would take longer for Bitcoin to transition to a bull market, perhaps around a year and a half of stagnation, before Bitcoin starts to climb again.
In summary, Bitcoin’s recent drop followed comments by the U.S. Federal Reserve Chairman Jerome Powell about inflation, leading investors to expect more aggressive monetary policies.
The value of Bitcoin fell by over 12%, and other cryptocurrencies were also affected. Experts warn that the market could face further declines, and it may take longer for Bitcoin to enter a bull market again.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
