Hassan Ali Bakr, CEO of Big Invest Investment, predicted that cryptocurrencies will continue to collapse in the coming period, with bitcoin prices to reach less than $15,000 in the coming days in light of the current heavy selling.
Hassan Bakr, for Egypt, said these expectations come in the case of continued risk aversion to controlling the cryptocurrency markets, and the difficulty of rebounds in the coming period.
Cryptocurrencies have recently experienced significant declines, and bitcoin, the most popular cryptocurrency, reached a level below $18,000 earlier yesterday, the lowest level since December 2020, before returning to a level of $19.5,000 later in the day, according to Data from Queen Market Cap.
Bitcoin has lost more than $10,000 in the last nine days, down about $28.2,000 from the beginning of the year to date by about 59%.
Ethereum also fell below $900 before bouncing back today above $1,000 at $1,033.
Hassan Bakr said the continuation of tight monetary policies around the world will increase the cost of keeping digital currencies compared to other investments, which will make the investment trade-off against these assets to put pressure on digital currencies.
He said bitcoin’s price is likely to drop below $10,000 by the end of this year if the selling waves and the negative situation surrounding foreign exchange markets continue in the current period, and the expected gradual rises in U.S. and global interest during the year.
Hassan Bakr said that the current period is witnessing a series of pressures on digital currencies in general as a result of factors that affect significantly, directly and indirectly these currencies, the most important of which is the state of public fear in the world of inflationary stagnation, and therefore the policies of central banks tightening, most recently the rise of the U.S. Federal Reserve interest rate 0.75%.
He said the hike makes cryptocurrencies much less attractive because the cost of keeping them is higher than holding other investments, which has occurred over the past few days, represented by strong cryptocurrency declines, which have pushed bitcoin’s most popular currency to levels below $20,000.
In addition, Bakr explained that there is a general state of fear of cryptocurrencies and risk aversion after the market received blows, the most important of which was the rapid collapse of the terra currency and other currencies issued by terra currency, the most important of which was luna currency fixed on the U.S. dollar and was abruptly disengaged with the dollar, which lost more than 99% of its value in just two days.
This has caused fear and panic from investors in cryptocurrency markets and their flight, as well as the presence of liquefactions in major cryptocurrency portfolios in an attempt by investors to support their positions in other markets, particularly after strong declines in stock markets globally.
Digital currencies are virtual currencies that do not have a physical presence and are not covered by concrete assets, are traded over the Internet, are issued by any central bank, are not supervised by any regulatory body and are not controlled by any central authority.
Cryptocurrencies rely on thousands of computers around the world to validate transactions and add more of these currencies to the system.
Bitcoin is the most popular digital currency but not the only one that has gained popularity in recent years, currently reaching thousands, especially after Bitcoin’s first big rally in 2017 that highlighted and traded in this area and thus the emergence of more of these currencies.
On the QueenMarket Cap platform alone, some 9,910 cryptocurrencies are traded, led by Bitcoin, along with some other cryptocurrencies that have gained popularity after bitcoin prices have risen and some have been unable to trade, such as Ethereum, Dogcoin, Litecoin and others.
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