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When talking about Bitcoin price, there is nothing that can be predicted accurately. Being the first and the most valuable crypto in the market, almost everyone is now aware of the frontrunner cryptocurrency. The token made huge headlines at the end of last year, reaching its all-time high price and breaking the $60000 mark for the first time.
Unfortunately, this year has not been very great for Bitcoin and the crypto industry as a whole. There are many things going around the world working more or less in opposition to the interest of Bitcoin. But despite everything, Bitcoin is still the most valuable crypto in the market, making it worth discussing.
So recently, Bitcoin pulled up over the $17000 mark, and investors are now hoping it will make it to the $18000 soon. But will it? Let’s find out!
What Role Did the FTX Controversy Play Here?
If you are a new Bitcoin trader or investor, you might wonder what FTX has to do with Bitcoin’s prices. If you are still wondering, you are in for a big surprise. So recently, news surfaced that FTX and its subsidiary Alameda Research are in trouble for many reasons. But the most important of all these reasons is that FTX’s native token, called FTT, accounts for a rather sizable portion of Alameda’s asset holdings.
This came as a shock to the crypto industry since no one expected there would be so much interconnectivity between both companies. The latter’s balance sheet is the evidence that shows this connection, which could be better news for the crypto industry.
Following this news, Binance made an announcement that it will be liquidating all its FTX holdings, given the rising concerns about the exchange. This made many traders and investors panic, and they soon started selling their FTT holdings.
FTX further added fuel to this panic by closing its withdrawal services without any prior notice to users. Besides that, there was no formal explanation or justification from Sam Bankman-Fried, founder and CEO of FTX, as to why they made this move.
What next for the exchange?
Soon FTX realized it was in deep waters and started looking for ways to get it out of this mess. Binance soon came to its rescue with Binance’s CEO, CZ, taking to the microblogging site Twitter to announce they intend to acquire FTX and help them get through the liquidity crunch.
Both the CEOs got together to broker a deal that will ensure that FTX remains afloat amidst all these controversies. They further added that this move is in the greater interest of users and the industry as a whole.
Unfortunately, more was needed to win over the faith of users who have invested in the crypto market. If anything, this move has made it clear that no crypto company is too big to collapse, and the worst can happen to anyone.
All these factors fueled negative sentiment towards the crypto market, ultimately leaving the entire industry on a back foot. These eventually adversely impacted Bitcoin’s performance in the market, resulting in it losing a lot of valuation.
What Can We Learn From The Upcoming Customer Price Index Report (CPI)?
Inflation has become a major concern for investors, and the data from the Consumer Price Index makes this very clear. The report suggests that inflation increased by 0.6% in September. The report further states that inflation increased by 8.2% between September 2021 and September 2022, which is higher than what experts predicted earlier.
The most recent time, there was an FOMC meeting where Jerome Powell repeatedly urged decision makers to await data before deciding on the next steps for the interest rate policy. Following the release of the report, there has been a direct impact on the overall prices of Bitcoin as well as other cryptocurrencies in the market. Bitcoin has reached its lowest recently, reaching new record lows in 2022.
Bitcoin Price Prediction: Technical Analysis
Time has not been very kind to Bitcoin in recent times, with so much going on in the crypto industry as a whole. Besides that, Russia’s invasion of Ukraine has also devastated Bitcoin’s overall performance since the start of this year.
However, Bitcoin was still performing well in past weeks, its prices breaching the $21000 mark and generating better returns for investors. But then the entire FTX controversy came into play resulting in further devastating consequences for the crypto. All these triggered a panic sell-off among investors, which again impacted the overall valuation of Bitcoin.
But barring the FTX controversy, the US midterm elections also played an important role in hastening this downfall. These elections play an important role, especially with two bills associated with the crypto market. Diligent investors are well aware of this, and now that the election is over, things might change for good in the future.
Other than these external factors influencing the price movement of Bitcoin, the token is still a leader in the industry. Besides, Bitcoin does not have any worthy competitor since every token is suffering the consequences brought forward by this bearish market.
So, What’s Next For Bitcoin?
Bitcoin is still the most powerful cryptocurrency in the market. Hence even a slight dip in its valuation automatically triggers a further downfall for every other token. But there are many presale cryptos that are protected from the bearish sentiments of the market. These presale cryptos also show great potential for growth resulting in more investors choosing them over conventional cryptocurrencies.
Dash 2 Trade (D2T) is such an example, as a crypto that hit stage 3 of the presale and managed to raise a whopping $5.4 million recently. The price of Bitcoin may or may not reach $18000 in the short term, as the crypto market is highly volatile. But one can consistently research and keep up with the market trends to see where time takes Bitcoin.
In the meanwhile, there are excellent options like RobotEra, which has begun its sale and Tamadoge, which is now listed on Gate.io as of Thursday, the 10th of November 2022.
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