Bitcoin Rebound - Crypto’s Most Popular Coin Makes Recent Gains
Finally, what crypto investors have been waiting for since June this year: a Bitcoin rebound.
The cryptocurrency market, as reported by CNBC, felt the impact of a stronger U.S. dollar and a global decline in stock markets.
The past few months have seen the U.S. Federal Reserve System making efforts to fortify the dollar.
Per The Washington Post, the Fed has most likely been doing its part in resolving inflation in the country.
From the CNBC report, the effect of the renewed dollar strength plus the dip of global stock markets caused the cryptocurrency market to slip below $1 trillion.
COPYRIGHT_WI: Published on https://washingtonindependent.com/bitcoin-rebound/ by Luke Evans on 2022-10-06T08:14:50.779Z
On September 7, early in the day, Bitcoin’s value went below $19,000. Checking its price in June, this one was even lower.
However, as the day progressed, a Bitcoin rebound happened before the day ended. Its value went up a little above $19,000.
Note that it’s not only the U.S. facing inflation.
Other countries were not spared, too. Like the U.S., their respective central banks already resorted to “tightening monetary policy.”
As the U.S. dollar continues its struggle to remain strong, the crypto market could further be affected but not in a positive way.
Luno’s (a crypto exchange) vice president of corporate development and international, Vijay Ayyar, told CNBC how the U.S. dollar impacts digital coins:
If we see the dollar start to move back down, then we should be able to get risk assets such as bitcoin move back up again.
- Vijay Ayyar
Considering that possibility, how long will this Bitcoin rebound take, and what could be the next probable scenario for this largest cryptocurrency?
Bitcoin BTC Price News Today - Technical Analysis and Elliott Wave Analysis and Price Prediction!
Will Bitcoin Rebound Soon?
Investors who rejoiced with the latest Bitcoin rebound would recall last year’s rebound of the whole crypto market.
According to CNBC, the crypto market peaked in November 2021. Come 2022, it has faced the challenges of the new year, and has so far already lost a lot of its value.
How much? An estimated $2 trillion were lost already.
In the case of Bitcoin, back in November 2021, it hit $68,990.90. It was its all-time high achievement. This 2022, approximately 60 percent of that value was already gone.
According to Investopedia, the following factors affect the value of Bitcoin:
- supply (available number of Bitcoins left to be mined)
- demand (how the market invests on it)
- the presence of other cryptocurrencies being traded in the market
- how investors view it
Per crypto site CoinDesk, there are 21 million Bitcoins - its total fixed supply. All Bitcoins could be mined by 2140.
The question now is, will Bitcoin recover?
Finance and tech writer Eric Rosenberg offered an answer, albeit for the entire crypto market. In his article about crypto winter (a period where cryptocurrency prices are low) published by Investopedia in September 2022, he wrote:
Open trading marketplaces determine cryptocurrency prices. The latest trade price sets the currency on each exchange. There’s no guarantee of future prices or a future recovery.
- Eric Rosenberg
But investors recently saw a Bitcoin rebound, which could be considered a good sign.
Bitcoin Rebound Today
Before the latest news of a Bitcoin rebound broke out, its value according to CNBC, was somewhere between $18,000 and $24,000.
On the contrary, other cryptocurrencies such as Ethereum achieved values higher than Bitcoin.
To compare, on June 19 (a Sunday), Bitcoin traded at $17,601 and Ether at $880.93. By Friday of the same week, Bitcoin gained approximately 31 percent and Ether, 106 percent.
At the time of this writing, per CoinDesk, Bitcoin’s price is $18,500.52.
Financial news site Barron’s said that Bitcoin traded in the range of $20,000 to $25,000 in mid-June. Last week, the Bitcoin rebound was a welcome respite.
Still, for this week, despite an increase last Tuesday, September 13, it has failed to reach at least $20,000.
In other news, Ether gained 4 percent; Cardano, 2 percent; Dogecoin, 3 percent; Shiba Inu, 2 percent; and Solana, 3 percent.
Another Bitcoin rebound today, or in the coming days, is still possible, but the cryptocurrency market will still need time for a dramatic recovery.
As Forbes cautioned, governments continue to recalibrate their policies to deal with pertinent fiscal issues, which may include inflation. This move will affect the performance of the crypto market.
Bitcoin Rebound 2022
On September 9, a Bitcoin rebound delighted investors as the coin’s value increased by more than 9 percent, moving its price above $21,000.
It’s a clear recovery as Bitcoin only managed a 5 percent increase in the last five days prior to that date, according to Forbes Advisor.
Moreover, the site explained that inflation reports didn’t daunt traders. In the case of the U.S., they’re hoping that the Fed may push the pause button for its interest rate hikes.
The European Central Bank (ECB) also played a role in the Bitcoin rebound.
ECB temporarily delayed the rise in value of the U.S. dollar when it introduced a 75 basis-point (bps) interest rate hike. The result? A stronger euro.
Another factor that also impacts Bitcoin’s price is the volatility of cryptocurrencies.
In Bitcoin’s case, the Market Recap and Outlook Report (July 2022) by Kraken Intelligence, kept track its volatility in August:
- 61 percent - start of August
- 45 percent - August 18 (recent low)
- 52 percent - end of August
Even with the recent Bitcoin rebound, investors may become less risky and more vigilant in the coming days when trading Bitcoin and other cryptocurrencies.
Bitcoin news site Bitcoinist cited three crypto trends this 2022 that could lead to another Bitcoin rebound:
- the use of Bitcoin and other cryptocurrencies becoming more mainstream
- increased participation by “institutional investors” (more crypto investments will pour in)
- more crypto regulations are in works (these will lessen the fear of getting scammed)
People Also Ask
Will Bitcoin Go To 100k?
In an April 2022 interview with CNBC, Antoni Trenchev, co-founder and CEO of crypto lender and platform Nexo, predicted that Bitcoin could be worth $100,000 “within 12 months.”
At the time of this writing, the highest price Bitcoin achieved was $68,990.90, which happened in November 2021.
Trenchev was the same person who claimed in January 2020 that Bitcoin price would reach $50,000 by December 2020. It never happened but in February 2021, it hit beyond $50,000.
What Will Bitcoin Be Worth In 2023?
Based on analyses and predictions by crypto blog Changelly, Bitcoin might have an estimated minimum price of $29,739.35 in 2023.
How Much Is BTC Worth In 2030?
Per Changelly, Bitcoin price could be somewhere between $399,045.11 and $459,243.06 in 2030, with a projected average price of $410,117.97.
A report by Yahoo! Finance stated a prediction involving a figure way higher than Changelly’s. According to the report, by January 2030, Bitcoin’s price could be $2.11 million!
Another Bitcoin rebound may or may nor happen anytime soon based on the outcome of the September meeting of the Fed.
According to Forbes Advisor, Jerome Powell, the Fed’s chair, said that its interest rate hikes would remain an option until inflation is over.
Various American news sites reported this week that the Fed already increased interest rates by 0.75 points.
As mentioned earlier in this article, these Fed rate hikes affect how Bitcoin can bounce back.
When interviewed by Barron’s, London-based market analyst Craig Erlam described the most recent Bitcoin rebound as a “short-term relief.”
A senior market analyst at MarketPulse, a resource for information about global markets, and at OANDA, a forex trading resource, Erlam warned that Bitcoin could “spiral lower once more.”
So, another Bitcoin rebound depends on how the American inflation will proceed and how the global stock markets will perform.