Bitcoin (BTC)reached its highest level in 2021, reaching $69,000. Many names expected the upward momentum to continue, but the result was different than expected. With the effect of macroeconomic conditions, the bear market became dominant. Terra’s collapse in May was followed by FTX in November, worsening the results.
Bitcoin price dropped from $47,200 at the beginning of 2022 to $15,599. Although the sharp decline has ended according to many names, some names are waiting for a bottom around the $13,000 level.
Koinfinans.com As we reported, British bank Standard Chartered even discussed the possibility of Bitcoin price falling to $ 5000 in 2023. You can read the report we compiled by clicking here.
Cryptocurrency exchange Huobi on the other hand, on the side that thinks the Bitcoin price has reached the bottom. The exchange commented on the cryptocurrency market in a recent report. According to the report, Bitcoin and the cryptocurrency market are at a ‘cyclical bottom’.
Bitcoin and Ethereum Go Mainstream
“Mainstream crypto assets such as BTC and ETH are included in the long-term investment portfolio. Bitcoin price is at $15,000 in this bear market and ETH is likely to bottom at $1,000. As a result, we expect consolidation to continue until the first quarter of 2023. The chances of a good recovery soon afterward are very likely.”
As a matter of fact, the report also included the detail that the bear market lasted longer than expected. According to the exchange, the biggest reason for this was the delay in regulations. On the other hand, the decrease in leveraged transactions in the industry is believed to be effective.
In macro terms, the US CPI suffered significantly after four consecutive 75 basis points rate hikes. In addition, lower interest rates are expected as of December. However, this will stop around March 2023. The rate of increase is declining, the hardest part of this cycle is over and the bottom of monetary policy is almost ready.
“…we believe that the opportunistic and blind optimism in the market has been wiped out by the magnitude and duration of the market downturn. The FTX incident could be the final bullet for troubled institutions and projects to be wiped off the scene.”
As a result, Huobi believes that the bottom level will occur in the first quarter of 2023.
You can follow the current price action here.
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.