BTC went through an “extreme fear” period. What’s next? [Experts Predict]

After reaching a high level in November 2021, the price of bitcoin has fallen more than 50% as of May 2022. After falling over the week to its lowest price in 18 months, Bitcoin has been able to recover. The price of the cryptocurrency is currently at $20 854.40. Other top digital currencies are likewise significantly lower than their previous highs. The marketplace has lost more than $1.5 trillion as a result of the decline, and analysts have warned that another “crypto winter” comparable to the one that occurred in 2018 may be approaching.  

The unstable price of bitcoin emerges as President Nayib Bukele of El Salvador visits 44 nations on Monday to debate the virtues of cryptocurrencies and the advantages of adoption. Several additional nations are on the verge of embracing bitcoin, amid concerns from the IMF and some industry insiders, eight months after El Salvador designated it as legal currency. 

The Bitcoin Fear & Greed Index has just fallen into the single figures to indicate “severe fear,” reaching a 2.5-year low. Using the information from digital currencies, status updates from social networking sites, and market movement to gauge sentiments, the sentiment index serves as a general guideline for how traders and investors act. During the market slump in 2019, when it was last this low, some investors used the index to determine whether to buy, sell, or keep stock. According to its developers:

  • Extreme fear may indicate that traders are overly concerned, and it can offer a possibility of purchasing.
  • The economy is ready for collapse when investors become overly greedy.
  • Extreme fear is interpreted as an indication that traders may be too concerned, but it can also represent an investment opportunity in the cryptocurrency market.
  • The BTC market is completely in a consolidation stage, according to specialists, and there are signs that the purchasing impulse has strengthened. 

The notion that Bitcoin reached a low of US$33,184 in the previous month and a high of US$45,661 within that same time period, according to CoinMarketCap, is an indicator of its unpredictability. Investors are concerned about the volatility of cryptocurrencies, with some professionals predicting a bearish trend for Bitcoin or, at most, stable conditions. In the latest study, the American banking giant JPMorgan estimated Bitcoin’s fair market value to be US$38,000, or roughly 3% less than its existing trade value and forecasted that it would eventually reach US$150,000. After the crash, investors can take considerable time to come back. 

Some investors might prefer to use platforms to protect their cryptocurrency information. Trader-broker connecting tools like Kraken and Bitcoin Profit App can connect you with one of their reputable partner brokerage businesses that provide the feature. If you are not familiar with the app yet, you can find more information here

Does Fear Help Crypto?

It can frequently come down to a question of personal viewpoint when it relates to how the industry feels about cryptocurrencies. Some people think it’s advisable to stay away from the market during times of fear and to wait to invest until the market begins to recover. Some people hold the other view, though.

Anxious About Investing? What Lies Ahead

Top cryptocurrencies like Bitcoin and Ethereum had started a rebound pattern at the beginning of the month, which would ultimately spread to the broader market. Prices increased, and investors who had reentered the market felt more optimistic as a result. However, soon after, the market began one of the distinctive corrective tendencies that go along with the bull rise, and as a result, investors decided to pull back rather than take a chance on the additional decline. 

Bitcoin Price Prediction

By the final weeks of 2022, the cost of Bitcoin (BTC) is predicted by Finder’s panel of fintech experts to increase to $25,473. The panel forecasts that BTC will peak at $35,484 in 2022 and bottom out at just $13,676 at some point. The $25,473 end-of-2022 forecast made by the panel in July significantly decreased from the $65,185 forecast made in April 2022 and the $76,360 forecast made in January 2022. Despite the fact that the panel’s current forecasts are less optimistic than earlier ones, it still believes that the price of Bitcoin will rise in a similar manner, although from a lower base. The end-of-2022 forecasted price of $25,473 implies an increase of around 22% above the current price of $20,808 at that time. By 2025, the forecasted price of $106,757 would have increased by 413 per cent, and by 2030, the forecasted price of $314,314 would have increased by 1,411 per cent. The panel’s projections are less bullish overall on the highs BTC will reach by the end of both 2025 and 2030, even though the crypto meltdown is partly responsible for this. BTC was expected to end 2025 at over $265,000 and $706,000, respectively, according to the panel’s estimates, one year prior; these figures were vastly different from the forecasts of approximately $107,000 and $314,000 in the July 2022 analysis. 

Final Thoughts

The most crucial things to keep in mind if you’re thinking about purchasing Bitcoin (BTC) are to conduct thorough research and become informed of all the risks associated. Even while the early users of this virtual currency received significant gains, there is no assurance of future growth.

Bitcoin may prosper if cryptocurrencies are successful in their drive into the mainstream and win universal support from governments worldwide and users. And there appears to be room for expansion in the future if the scalability problems the Bitcoin blockchain is currently experiencing can be effectively resolved.

But keep in mind that the cryptocurrency market is becoming increasingly congested and that many well-known and well-funded alternative cryptocurrencies will pose a number of challenges to Bitcoin’s dominance as the top virtual currency in the globe.