The crypto market has experienced a very big crisis in recent months. The value of all coins has dropped dramatically, and even the most famous cryptocurrency of them all has not been left unscathed.
After already reaching a record price of $69,000, Bitcoin Lost (as of October 2022) about two-thirds of its value. The question is, will Bitcoin and other currencies manage to recover? To answer it, we will first have to answer another question: What actually caused this crisis?
The effects of inflation and interest
Since the beginning of 2022, the price of Bitcoin has been on the decline: it fell below $50,000 at the end of December 2021, and since then, following a series of incidents in the industry and macroeconomic policies of countries, Bitcoin has lost most of the price gains it has accumulated over the years.
Prices are rising all over the world, and attempts to curb inflation involve raising interest rates. This is what happened this year in different countries, And Bitcoin is adversely affected by it. the relationship between him and Traditional financial markets, including financial assets such as stocks, caused the currency to crash.
However, Bitcoin has already survived crises in the past, and many experts believe that it is able to recover from the current crisis as well. That’s how it might happen.
Support of MicroStrategy and other huge organizations
Chairman of the company MicroStrategy that deals with business intelligence, Michael Seiler, continues to demonstrate unwavering faith in Bitcoin’s ability to help eradicate inflation. Seiler stated that the company added 301 more bitcoins to its already impressive 130,000 bitcoins. according to the Securities Authority (SEC) in the USA, the purchase cost the American company 6 million dollars.
Since August 2020, MicroStrategy Publicly supports the use of Bitcoin. So far, the company has spent $3.98 billion on buying the coins, at an average price of $30,639 per bitcoin.
And that’s not the end: the company intends to raise 500 million dollars to purchase additional bitcoins in the coming weeks. By virtue of such purchases, of MicroStrategy and other huge companiesBitcoin may bounce back.
The indices convey optimism
Technical indicators support the possibility that Bitcoin will rise soon. According to the indexSMA (simple moving average) of Bitcoin, the price is expected to return to around $20,000 in the short term.
Given the relative strength index (RSI) stands at 43.73, which shows that the amount of purchases is relatively low. This means that this timing is suitable for the entry of new investors, who will raise the market. However, other indices such as MACD Present more neutral data.
Tamadoge Holds the greatest potential
As long as certain currencies are liked by investors, the crypto market maintains a certain status, and this also helps Bitcoin cope with the difficult months.
During the current crisis, some investors have found that they can still make a profit. The key is to identify the right currency at the right time. An example of such a currency, which succeeded despite the declines of Bitcoin and other currencies, is Tamadoge.
In conclusion
So what is going to look like The future of Bitcoin And of the crypto market? There are all kinds of different estimates. We only have to wait and wait for the next moves.
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