- Bitcoin (BTC) as usual is being tipped for an impressive price in the long run.
- Top analysts identified pivotal triggers that can spearhead the coin’s growth.
In recent times, the world’s largest crypto Bitcoin has been swinging within market cycles and is yet to reach a sustained bullish momentum.
Although the coin is currently trading at $27,420.15 according to our data, Katie Stockton, Founder, and Managing Partner of Fairlead Strategies has stated in an interview that she has an expectation for the digital currency to revert to its base breakout point of around $25,200. She does, however, expect to see an upward tendency over the medium run.
While speaking on the current performance of the largest coin, Brent Xu, CEO of Umee, a Web3 bond-market platform claimed Bitcoin has yet to discover a new base that will propel the price out of its weeks-long range of about $25,000 to $30,000.
Additionally, he highlighted a combination of factors that have contributed to the swinging movement of Bitcoin. Xu added that the price surges associated with a mini-run of bank failures particularly with First Republic Bank and PacWest Bancorp in the US had failed to generate long-term market momentum.
Xu established that the narrative of Bitcoin becoming a new banking system following the recent bank runs is yet to be fully substantiated. He added that the price of Bitcoin will continue to oscillate for the rest of the year. Meanwhile, the price of Bitcoin also dropped on Wednesday following rumors of a $320 million U.S. government bitcoin sell-off before rebounding as markets shrugged off the hearsay.
Notably, regulatory uncertainty surrounding cryptocurrencies, as well as a lack of clear standards from governments and financial regulators, have also contributed to Bitcoin’s market volatility.
As governments and regulators work to understand and control the cryptocurrency market, investors may become concerned about the future of Bitcoin and other cryptocurrencies, leading to heightened volatility.
Interestingly, Bitcoin also faces increasing competition from other cryptocurrencies that offer different features and use cases. As more cryptocurrencies enter the market, investors may shift their attention and resources to these new alternatives, affecting Bitcoin’s market dominance and price.
Forecasts for the End of Bitcoin’s Downtrend
Remarkably, Xu expects to see more Bitcoin adopters following the acceptance of major innovations like the Shanghai Shapella upgrade or some major improvements to the Bitcoin blockchain.
Additionally, he believes that the steady decline in inflation from a peak of 9.1 percent last June will permit the U.S. apex bank to reconsider the steady interest rate increases that Federal Reserve critics blame for the near banking meltdown.
Based on current market trends and expert analysis, there are a few possible scenarios for the end of Bitcoin’s downtrend. Notably, Bitcoin has historically experienced significant price corrections before entering a new bull run, and this current downtrend could be a typical market cycle.
In this scenario, the market could stabilize and start to climb again in the coming months, possibly even reaching new all-time highs.
