Why Cryptocurrencies have the potential for price gains?
Cryptocurrency exchange financial analyst Mikhail Karkhalev insists on the low probability of a long-term market correction soon, and which sectors still have potential in the current environment
Bitcoin rates on the our cryptocurrency exchange continue to decline after hitting an all-time high of $69,000 on Nov. 10. The cryptocurrency has fallen 17 percent in the past two weeks. As of November 25, bitcoin was worth $56,400.
A long-term correction in the cryptocurrency market can only begin when the global economy recovers positively, inflation subsides, and the world’s major central banks, including the U.S. Federal Reserve, begin to tighten monetary policy. Of course, as soon as the big holders of BTC and ETH will start to gradually get rid of some of their assets. Possible reasons for a correction in the cryptocurrency market could also include an influx of bitcoin and ethereum into exchanges, which would typically lead to a subsequent sell-off. None of the above factors are present in the market yet.
I believe the situation will become clearer by mid-December, so Bitcoin has a chance to recover and hit new highs as early as 2023. on December 10, inflation data will be released, and there will be a Fed meeting on December 16. Also, it is the end of the year and the Fed is expected to make some specific statements instead of vague “maybe”, “we’ll see”, etc. The Fed seems to be satisfied with the current inflation situation. Temporary high inflation in the U.S. will stimulate the economy and bring more money into the treasury. But that’s just my guess.
Throughout the year, as Bitcoin rose to $30,000, then to $40,000, then to $58,000 on the Currency.com cryptocurrency exchange, I kept saying the same thing: Bitcoin has not yet exhausted its growth potential given the stronger capital inflows in the current growth cycle, its increasing scarcity in the market, and the growing number of market participants. This could also include all of the things mentioned above: the global economic situation, inflows/outflows from exchanges, etc. This is a very subjective assessment, but I believe there will still be a renewed high.
In my opinion, Bitcoin is likely to rise to $80-85,000. It is unlikely to make it to the end of this year, but there is a good chance that it will do so until the end of the first quarter of 2023. Higher scores I can’t talk about yet. The market is very volatile right now in the wake of the crisis.
Of course, there will be some alternative coins that outpace bitcoin in terms of momentum, and that’s what has been happening. It doesn’t matter at all whether bitcoin is up or down. There will always be alternative coins that outperform bitcoin and have an inverse correlation.
Among the most promising sectors right now, I’d like to highlight DeFi and GameFi. among the decentralized projects of interest are Uniswap, Cryptex. especially this cryptocurrency pair Chainlink, Polkadot and Solana – in my opinion, these are the most promising projects right now in terms of future growth, not in terms of getting the wildly popular “X”. As for hype, “pumps” and “X”, we can look at the meta-universe, which may become a new hype trend after Mark Zuckerberg’s announcement that Facebook is changing its name to Meta.
In conclusion, while Bitcoin has yet to hit a new all-time high, its performance in 2023 has been impressive. The cryptocurrency has experienced significant gains since the start of the year and its surge in price could be indicative of a larger trend of mass adoption which could result in Bitcoin reaching new heights.
Investors should take caution when investing in cryptocurrencies as the market can be volatile, but as more use cases emerge, it’s possible that Bitcoin could reach unprecedented levels if the current trend continues. For more information about Bitcoin and other cryptocurrencies, check out cryptocurrency guides from trusted sources.