After hovering between $33,000 and $50,000 for months, Bitcoin suddenly crashed. The digital currency fell below the $30,000 threshold, a first in almost a year. Like most cryptocurrencies in the market, Bitcoin suffered from the collapse of Luna’s algorithmic stablecoin UST. After a coordinated financial attack, the stablecoin lost par with the dollar, causing billions of dollars in value to evaporate.
In an injured market, Bitcoin price continues to decline. This Wednesday, May 18, 2022, the queen of cryptocurrencies briefly Dropped below $29,000. Overnight, Bitcoin dropped to $28,708. This new collapse indicates a downward phase for Bitcoin, as with all digital currencies.
Bitcoin going to $22,000?
In this bleak context, many analysts fear that Bitcoin will fall further. On Twitter, Nebraskan Gooner, a well-known analyst and trader, $22,000 zone in the near future. As some observers predicted, Bitcoin could return to all-time highs by the end of 2020.
Obviously, this meteoric drop will hurt the entire market. Experts like Rekt Capital predict a 90% drop in the value of some altcoins. Cardano (ADA) and Solana (SOL) also saw a sharp drop in their prices, as did Ether (ETH).
Still highly correlated with financial markets and the actions of tech giants, Bitcoin not yet recognized as a safe harbor against the whims of finance. Zonebourse financial analyst Laurent Pinot, questioned by Capital, explained: “Today, given the volatility of the course, it cannot be characterized as such. You can’t put your money in there and tell yourself that it will retain its value over time”. Still, the expert reminds that Bitcoin “best performing asset in the last 10 years”.
Source : Capital city
