What scenario for Bitcoin in the near term?
At 6 am this morning (April 19), Vietnam time, on CoinDesk, the price is Bitcoin traded at 40,846 USD, up 2.3% compared to yesterday (April 18), making each virtual currency add 911 USD.
In the last 24 hours, the world’s most popular and valuable cryptocurrency traded as low as $38,577 and as high as $41,070.
Bitcoin coin. (Photo: Adobe)
During this time period, Bitcoin trading volume was around $34.9 billion, market cap at $779 billion. Total market capitalization increased 1.4% to 1.890 billion USD.
Bitcoin price recovered, causing many large-cap cryptocurrencies to move up, helping the green color return to the market. Specifically, Ethereum is up 0.9%, Tether is up 0.001%, Bnance Coin is up 1.2%, USD Coin is up 0.06%, Ripple is up 0.4%, USD is up o.06%, Terra is up 12%, Avalanche up 1.6%…
Previously, according to data from Coinmarketcap, on the morning of April 18, the Bitcoin price dropped deeply to below 39,000 USD. This is the lowest price of Bitcoin in the past 1 month. Only in the morning of April 18, the price of Bitcoin fell 1,300 USDequivalent to 3.2% of the value.
Bitcoin experienced a week of slight price volatility. From April 11 to now, the price of cryptocurrencies has fluctuated from $ 39,442 to $ 42,380, a difference of nearly $ 3,000 / BTC, around 7.44%.
The price difference as above is not worth mentioning if compared with the price difference of 35.7% in the past 3 months. Even this figure is quite small compared to Bitcoin’s recorded 68% annual fluctuation.
Crucially, though, Bitcoin did not hit $48,000 or drop to $30,000 as some predicted. The world’s most popular cryptocurrency, although fluctuating, is not too strong, making it difficult for many investors to determine whether BTC will be considered a fixed asset like gold, or whether it will increase or decrease. cryptocurrency market in general.
Last month, Bitcoin traded as high as $47,000 and hovered around $42,000 or more, leading investors to be optimistic that the cryptocurrency could hit $48,000 or more. However, pessimistic news in the major financial markets caused Bitcoin’s closing price to drop shortly thereafter.
Specifically, on April 12, the US announced the consumer price index (CPI) in March at 8.5%, the highest since 1981. Meanwhile, in the United Kingdom, the CPI increased to 7 %, the highest in the past 30 years.
For the above reasons, crypto traders are increasingly concerned about the possibility that the US Federal Reserve (FED) will raise interest rates throughout 2022 to curb inflationary pressures, Cointelegraph assessed. If the global economies enter a recession, investors are likely to move away from some risky asset classes like cryptocurrencies. These worries dyed Bitcoin and the entire crypto market in the red since then.
However, the assessment of Bitcoin in particular and other popular cryptocurrencies as risky assets does not seem to receive consensus from other analysts. This is also reflected in the fact that despite the price fluctuations, Bitcoin is still not below the $37,000 mark at the end of February.
Determining Bitcoin and Ethereum as a risk asset or a security asset takes time, but the recent plunge in these two coins and other cryptocurrencies has dampened optimistic forecasts.
In 2021, Bitcoin twice crossed the $60,000 mark, increasing the entire market capitalization to more than $1 trillion, making it the most valuable digital currency in the world. However, the current drop to the $40,000 mark brings its market capitalization to just $800 billion. Ethereum, the second largest cryptocurrency after Bitcoin, reached a peak market capitalization of $500 billion in November 2021.
Forbes cited research from Crypto Head – a website that analyzes and evaluates the digital asset industry, stating that, ignoring recent fluctuations, if Bitcoin maintains its average annual growth momentum of 159%, this coin could return to the trillion-dollar mark as early as next year.
While historical growth rates suggest that many major cryptocurrencies, including Bitcoin, could reach all-time highs in the coming years, crypto market watchers cannot make a judgment. price certainty in the short term.
Strategist at DailyFX Paul Robinson thinks that Bitcoin sold off in the final quarter of 2021, but trading in 2022 is relatively unpredictable. However, the market is likely to be more interested in Bitcoin in the near term.
The volatility of Bitcoin over time is consistent with the stock market, as well as influenced by the stance of the US Federal Reserve and from the Russia-Ukraine war. As a result, the crypto market could continue to get more complicated, Mr. Robinson forecast.
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