Bitcoin Is Falling As Tensions Between Russia And Ukraine Escalate
With the recent surge in volatility in both stocks and cryptocurrencies, many investors are turning to more stable assets like gold.
Cryptocurrencies showed no signs of slowing down as the week progressed with geopolitical tensions, with Bitcoin briefly dipping below $40,000 for the first time in two weeks. Ether fell 5%, Dogecoin 4.5% and Shiba Inc 6.5%.
Related literature | Bitcoin Heading to $38,000 Amid Global Uncertainty
In the past, China and US regulations have influenced Bitcoin price. However, it seems that this time investors are dumping volatile stocks for more stable stocks like gold. And it is due to an impending war in Eastern Europe. The geopolitical tension could cause the prices of significant cryptocurrencies there to fall soon enough.
In a Friday’s newsletterwrote David Duong, head of research at Coinbase Institutional;
Crypto performance over the past week shows us that there is little room for complacency regarding one of the major themes impacting this market. Open conflicts could potentially affect bitcoin hashrates, which could exacerbate the reflexive market response that is weaker for high beta-risk assets such as crypto.
Cryptocurrencies continue to keep pace with growth-sensitive risk assets such as stocks. Despite bitcoin has been heralded as an asset that would survive global economic or geopolitical troubles for years. Still, the story has not materialized as cryptocurrencies followed suit when prices were low last year. And rebounded as they hit new highs months later – all while staying within a relatively narrow trading band.
Analysts Forecast for Bitcoin Price
Cryptocurrency values are highly volatile and difficult to predict. However, it seems that one country will determine the future of cryptocurrency in the near term. What they decide is that one good or bad idea can have a huge impact on how much people buy in this new way of doing things.
Bitcoin price is currently above $40,000 after a dip | Source: BTC/USD chart on Tradingview.com
With the price of Bitcoin currently below $40,000, it is too early to say what will happen to the world’s most volatile cryptocurrency. However, a panel of experts believes that despite adversity and whether you are a speculator or investor, there has never been a better time as things can only get stronger from here.
Related literature | Bitcoin Slows Dive Below $40K, What’s the Best Point for a Pullback?
Bitcoin is expected to thrive in the short and long term, with a one-year price estimate of $68,942 per coin by Wallet Investor. This equates to an increase of nearly 300% from their five-year forecast value, which stands at &174,872 coins by 2027.
DigitalCoinPrice predicts that the cryptocurrency mainstay will be worth $56 301 in 2022 and 116706 in 2027.
CryptoNewsZ believes that by 2025, one Bitcoin will be worth between $100,000 and $125,000. This year alone, we can expect Bitcoin price to reach $72,000 per coin.
Featured image from Pixabay and chart from Tradingview.com