Cryptocurrency king Bitcoin (CCC:BTC-USD) is sitting on an unstable throne today. Indeed, the coin is in the midst of a more than 7% pullback. Cryptos are in the red across the board, as 15 of the 20 largest cryptos by market capitalization suffer steep losses. BTC price predictions are all over the place today as investors attempt to make sense of the crypto catastrophe.
Just how far will Bitcoin fall?
The likeliest culprit fueling today’s drop is news from the Federal Reserve and crypto investor Michael Novogratz. Novogratz stated today he believes BTC will bottom out between $38,000 and $40,000 in the wake of the Fed’s bond selloff.
Novogratz explained on CNBC that the Fed’s “more responsible” methodology in limiting inflation reduces Bitcoin’s utility as an inflationary hedge. Today’s crypto drop comes after a dreary Wednesday that saw the Nasdaq fall roughly 3%. It seems investors are approaching the new year with caution as pending interest rate rises combined with expectations of a market-wide pullback create bearish tension.
Bitcoin is frequently considered like gold in the sense that it holds its value when other assets drop. However, uncertain times beget surprising market reactions. With the omicron variant continuing to disrupt businesses, today’s pullback doesn’t seem entirely unwarranted.
Let’s see where the experts think Bitcoin is heading.
BTC Price Predictions: What’s Next After the Bitcoin Crash?
- CryptoNewsZ sees the flagship crypto ending the year at around $72,000 per coin, close to doubling its current $43,000 price point. In the longer term, it predicts the coin will enter 2024 at $86,000 and finish the year at $92,000.
- Wallet Investor is similarly bullish on BTC. The site has a one-year forecast of $78,481 per coin and a five-year price target of $203,020. It seems today’s slip did little to deter its confidence in the legacy crypto.
- Price Prediction is a bit more restrained on Bitcoin. The platform set an average 2022 price of $64,336 per coin, a far cry from the $100,000 plus estimates some foresee. For 2025, it’s a bit more bullish, setting an average price target of $201,961 per coin.
On the date of publication, Shrey Dua did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
