from a billionaire and rallying up to all-time highs in very little time after. However, the month of May has traditionally been a strong time point for Bitcoin, as compared to the U.S. dollar. So, the warning of a crash will come as a shock for many investors. last year and a further drop in its value could be heartbreaking for many. However, the crash—if it happens—would likely be due to the monetary tightening of the U.S. central bank to rein in inflation.
However, according to a Coindesk report, analyzing Bitcoin's ups and downs over the years has shown the cryptocurrency follows trends similar to other products in traditional finance and is as much affected by inflation and monetary policies of central banks as stock prices are. If that were true, would there be some indicators that could point towards an upcoming crash? Experts think so. between Bitcoin prices and Nasdaq and found them to be at 0.7. The extremes of the scale were 1, meaning perfectly in sync, while -1 means prices moved in the opposite directions.
While the correlation figure shows the prices were more likely in sync, Bitcoin prices do not follow equity markets, rather macroeconomic forces have the same bearing on Bitcoin as on other markets, experts told Coindesk. If the Federal Reserve continues on its path of monetary tightening, Bitcoin is unlikely to be spared. Technical analysis of price charts is also another source of predicting where crypto coins are headed.
Since cryptocurrency transactions are publicly available on the blockchain, analysts also follow their acquisition prices by majority holders ,, on the chain. The lowest price or generational bottom for each cohort is likely to be the price of the coin in the near term. Currently, this price is between US$ 25,000-$27,000, experts told Coindesk, so we could possibly see the value drop from the $39,000-odd price, at the time of this writing.
I hope so
I am ready.
Bitcoin is not even part of the economy yet
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