Wall Street Forecasts Bitcoin Will Plummet To $10,000

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Bitcoin underwent a series of ups and downs over the past few years. The cryptocurrency leapt at the start of the COVID-19 pandemic from $7,300 to a whopping $69,000 in November.

This massive increase caught the eyes of both professional and retail investors. However, on February 27, 2022, Bitcoin started to fall further. The War in Ukraine created a domino effect on cryptocurrency, lowering Bitcoin to $40,000. 

Crypto Winter

The threat of a crypto winter baffles the market with the continued instability of prices. Bitcoin has had a hard time maintaining its value, as it continues to drop. In 2021, Bitcoin had an exchange value of $32,933. 

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A year later, it dropped 33.63%, reaching a value of $21,660.60.

China’s blatant statement against cryptocurrencies poses a threat to the crypto market. The Chinese newspaper Economic Daily told Chinese investors to stop patronizing crypto.

The newspaper company used the Luna and TerraUSD stablecoins’ collapse to preempt Chinese investors from investing. A Forbes article also says that China suggests that the value of Bitcoin is actually zero. 

A $2 trillion loss of cryptocurrency lingers in the eyes and ears of crypto investors worldwide. Further damage to cryptocurrency threatens Bitcoin’s value. 

Brace For Impact

Despite the challenges, Bitcoin maintains stability with more than $20,000 value. Climbing up to a value of $22,000 also helped turn the tides to a more bullish note. Economists and entrepreneurs interpret Bitcoin’s stability as a good sign of a recovering economy.

However, other investors are adamant about the bearish market. On July 11, 2022, Bloomberg said that Wall Street is unconvinced of Bitcoin’s struggle for stability. 60% of the latest MLIV Pulse survey believed that Bitcoin’s value would reduce to half. 

The anticipated climb of $30,000 seems unclear, and a $10,000 exchange remains at stake. This speculation troubled the minds of Bitcoin investors for a drop. Should the latter happen, Bitcoin would face its doom.  

The uneven take of investors and financial markets caused a disruption of balance in cryptocurrency. And threatening the exchange values of crypto becomes a catalyst for a pessimistic approach. The negative impact it made even added fuel to the fire in all-things-crypto. 

A Chance Of Hope

Hope still exists despite Wall Street’s prediction of a threat in the decline of Bitcoin value. A larger population of retail investors may have questioned crypto’s standing, but professional investors still believes in Bitcoin’s stability in terms of digital assets.

The $69,000 Bitcoin value in November may be far from its current price. But, maintaining at over $10,000 is way better than China’s extremely bearish prediction. Investors are skeptical, but it doesn’t mean they lost hope. 

Tesla CEO Elon Musk and the Deutsche Bank even see Bitcoin’s potential. And maintaining its value of more than $20,000 is an opportunity for heading back to a higher stake despite Wall Street’s forecast of a downfall to $10,000. 

The divisive approach between professional and retail investors still contests crypto’s direction. With 28% believing in a better outcome, more investors are positive than the 20% who believe a crash is coming.

Impending Doom

The instability of the crypto market is continuing to spread fear across the globe alongside the growing fears of global recession. Tribe Capital partner Jared Madfes said that the fear of Bitcoin’s declining value reflects the people’s perception of the market. 

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A declining value puzzles the minds of investors causing a skeptical approach, which creates bad feedback.

A crash in crypto forces the government to protect its interests by overseeing crypto businesses. The government’s involvement in cryptocurrency also offers the potential for its acceptance. It invites confidence in institutional and retail investors. 

The prediction of a $10,000-drop circulates the world. Wall Street’s assumption might become a reality if investors continue to lose their hope in Bitcoin.

The Role Of The Central Bank

The central bank plays an important role in maintaining market stability. Affected consumers during the crypto crash suffered a loss. The central bank’s drive to intervene and regulate the industry is coming into play.

Financial institutions might still depend on Bitcoin and other cryptos. However, some investors are waiting for the central bank’s action to create its new form of digital currency. Bitcoin remains intact with the central bank’s monetary challenges and interest rate hikes.

Hope remains for Bitcoin to make an impact on the economy for the next five years.

Wall Street Prediction

The MLIV Pulse survey reflects quantitative evidence of Bitcoin’s prediction to drop to $10,000. Climbing to $30,000 seems impossible, and investors worldwide are becoming more skeptical. 

Wall Street perceives a plummet of Bitcoin’s value to $10,000. With only 40% on the positive side, an increase to $30,000 exchange remains contentious to 60% of investors.

Such is the belief of Wall Street investors about the impending crypto downfall. A turning point of sentiment for cryptocurrency threatens Bitcoin’s value. Should tension continue to rise, this creates a multitude of factors that would affect Bitcoin’s value. 

Final Thoughts

Cryptocurrency plays an impact on the economy. However, as the world faces the challenge of posing a threat to the economy, its value becomes unstable for the time being.

Jomar Teves

Jomar Teves