After a month of volatile prices, Bitcoin has stabilized in the $42,000 price range. Analysts say this is due to investors’ fear being replaced by hope for an imminent Bitcoin future as regulators take more steps towards legitimizing cryptocurrencies and blockchain technology.
The “if i invest $100 in bitcoin today how much is it worth” is a question that has been asked for a while. Bitcoin has stabilized around the $42,000 mark as fear remains.
The market is presently experiencing high dread, according to the Crypto Fear and Greed Index, as Bitcoin (BTC) stabilizes below $42,000. The world’s biggest virtual currency is approaching $40,000, and analysts predict the sell-off will continue in the coming days. Despite long-term bullishness in Bitcoin, the bears seem to be in charge of the short-term picture.
Bitcoin Approaches $40,000
Bitcoin is stabilizing below $42,000, according to CoinGecko statistics. Bitcoin has already lost 12.6 percent of its value in the first week of 2022, and the price might continue to decline in the next days and weeks. BTC, on the other hand, seems to have found support between $40,500 and $41,500.
With 23 points on the Terror and Greed Index, Bitcoin is currently suffering acute fear. This is one of the lowest scores we’ve seen in the last several weeks. With 24 points last month, this score indicated acute dread. Meanwhile, it only showed a market with “fear” and 29 points last week. On January 8th, however, the index fell to 10 points, one of the lowest levels in recent years.
The issue is whether Bitcoin will continue to rise in value in 2022, or if it will trade at present levels (accumulation period). A period of accumulation might be comparable to what occurred in 2018, when Bitcoin traded around $6,500 for many months.
The obvious difference presently is that Bitcoin is being traded at much greater levels than in the past, and businesses are highly interested in it. Furthermore, Bitcoin’s inflation rate has decreased in comparison to 2018, which is also a beneficial factor to consider in the next years.
Despite the present panic in the cryptocurrency market, several investors and experts feel that Bitcoin might undergo another surge to previously unheard-of heights. In an interview with Fox Business, Brock Pierce, the head of the Bitcoin Foundation, said that Bitcoin may reach $200,000 by 2022. This would imply an almost 5-fold increase in price above current levels.
Another thing to note is that PlanB, which is recognized for developing an extraordinarily accurate model for predicting Bitcoin’s price, expects the virtual currency will soon reach $100,000. As a result, despite current market panic, it is feasible that Bitcoin may have a good year in 2022. Nonetheless, we will learn more about this in the following months.
Bitcoin has been fluctuating a lot recently, with the price reaching as high as $19,000 before crashing to the low of $6,500. The fear that cryptocurrency will crash remains. Reference: will cryptocurrency crash.
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