An analyst’s opinion: Bitcoin can fall to $11,000 or $9,000
The past year has been a difficult time for the digital currency market under the influence of various factors. Bitcoin has lost about 80% of its value since the historical peak of the price was recorded in November 2021 (Aban 1400), and still some expect the price of this digital currency to reach even four digits as the downward trend continues.
To Report CryptoPotato, about a year ago, the digital currency industry was at its peak and Bitcoin was experiencing an all-time high. During this time, there was a lot of positive news, and the latest news that caused Bitcoin to reach an all-time high of $69,000 was probably the launch of the first exchange-traded fund (ETF) based on this digital currency in the United States.
In the following months, however, the situation began to change. Central banks changed their macro policy from printing and supplying new money in the market to raising bank interest rates in order to deal with their self-inflation.
Along with this change in monetary policy in the world, Russia also made a military attack on the territory of Ukraine, and with the increasing number of macroeconomic factors that acted against the direction of risky assets, digital currencies also faced more downward pressure. The formation of major crises in important parts of the digital currency industry, which began with the collapse of the Terra network, made the situation even worse.
As a result, several different platforms suspended user withdrawals, requested emergency funding, and some were forced to declare bankruptcy. At that time, a company was known as the savior of these bankrupt platforms; FTX! A collection that is now considered a bankrupt exchange. Almost everywhere there was talk of lending to platforms and offering to buy bankrupt collections in this field, the name of FTX and Sam Benkman Fried was seen, and few people imagined that FTX itself would suffer the widespread bankruptcy of the digital currency industry just a few months later.
After it became clear that FTX, the savior of bankrupt platforms, was unable to save its customers, Bitcoin experienced another sudden drop, hitting a two-year low below $16,000.
With this drop, the magnitude of Bitcoin’s fall from the all-time high of $69,000 increased to 80%. Now, DonAlt, a cryptocurrency analyst on Twitter, has warned that Bitcoin’s downfall may not be over yet. By comparing the price drop in the current downward cycle with the previous two cycles, he said that Bitcoin could fall to $9,500 by imitating the cycle of 2014 and 2015, and to $11,000 if the conditions of 2018 repeat. .