Bitcoin prices have been quite volatile in recent months. After approaching $70,000 in early November, it slumped as low as $30,000 in late January before surging to $40,000 last Friday. It’s definitely a huge volatility that creates winners and losers on both sides of the market.
More importantly, where will the digital currency go next? There are many bull and bear scenarios brought up by market experts right now.
The bullish situation is that the digital currency will come to the fore and reach new heights.
StableHouse Head of Product Management and Design, Matthew DiRienzo, expressed his expectation for the rise with these words:
“Despite the drop in the first quarter of 2022, we believe Bitcoin will bounce back to a new high of $100,000, although it is more than double its value just two years ago and the timing is difficult to predict.”
DiRienzo thinks that the price of the digital currency is driven by global macroeconomic factors such as the direction of interest rates and inflationary pressures.
“Furthermore, with around 20 million Bitcoins in circulation today, printing will stop at 21 million,” he said, adding that “supply and demand forces will begin to influence price levels this month and in the years ahead.”
Blockware Solutions analyst Will Clemente claims that there is a strong correlation between Bitcoin price and other risky assets such as technology stocks. “Bitcoin and the general crypto markets, perceived as a risky asset by traditional asset managers; Stocks continue to trade with a high correlation with technology stocks in particular and the Nasdaq in general.” said. Therefore, the price of the digital currency is expected to move with these assets.
Alongside these, Clemente points to a number of catalysts that could be bullish for the digital currency, such as El Salvador’s Bitcoin bond plan, Latin American countries following El Salvador, Spot ETF approval, and the rumor that mining will be adopted in Russia.
Ron Levy, CEO and co-founder of The Crypto Company, is also among those waiting for the rise. “Although Bitcoin is significantly below its November peak, it is still up 7% for the year,” Levy said. “In 2021, the world saw institutions enter the market with significant growth rates, and in addition to numerous other bullish sentiments, the real challenge will be to find a reason why Bitcoin does not continue to rise.” he added.
Still, there are market experts waiting for a drop. Domination Finance founder Michal Cymbalsty said, “As long as Bitcoin’s price action continues, the painful decline seems to be over quickly and the bottom is around $33,000.”
“Bitcoin has rallied around 20% and is trading around $39,000 as the bulls are slowly coming onto the scene. Unfortunately, I only expect their upward cries to be short-lived. If I had to guess, Bitcoin trades in a ‘crab range’, with temporary breakouts mostly in the mid to upper 30s range. 40s and lower 30s, respectively.”
However, Robert Johnson, a business professor at Creighton University, also thinks the bearish situation is stronger than the bullish one. “Predicting the direction of speculative assets in the short term is fraught with dangers,” he said.
“To quote the baseball philosopher Yogi Berra, ‘It’s hard to make predictions, especially about the future.’ However, given the highly speculative nature of Bitcoin and possible Fed tightening, the bearish case for Bitcoin is stronger than the bullish one.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.