Bitcoin has been in a steady decline since its all-time high of $69,000 back in November, but the digital asset seems to have stopped dropping in value despite the fear-uncertainty-and-doubt (FUD) that plagues global finance markets.
There are many reasons for the continuous decrease in value for Bitcoin since November 2021, and most of them are macro factors that are playing out across global financial markets. One big macro factor is the Federal Reserve considering hiking up interest rates four times over the course of 2022 in a bid to combat inflation. Not only has the cryptocurrency markets taken a hit from this news, but so has the US stock market.
Some analysts believe that the "bottom" for Bitcoin's price has already arrived ($35,000 to $38,000 range), with technical analyst John Bollinger writing on Twitter on January 25, "It's time to start thinking about a bottom in cryptos." Bollinger goes on to say that his personal plan is to wait for this bottom to be apparent and re-enter the market once it's confirmed that the downtrend has stopped.
As with all financial trading, it's almost impossible to predict the outcome of an asset, which is why it's highly recommended to do your own research before deciding on what asset you want to invest in.
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