Nobody knows yet what will happen with the price of Bitcoin, but there remain almost six weeks until 2022 ends. Although it usually needs some time to recover after suffering a considerable drop, recent signs show that it may rise again.
Following the collapse of FTX, the price of Bitcoin (BTC) dropped considerably, going from USD 20,000 to USD 16,000. Although many investors hope it may rise again by late 2022, nobody knows what will happen.
Movements of the Bitcoin Price over the Last 2 Weeks
The price of Bitcoin could not continue moving upward after breaking above USD 21,000 in late October. It fell back to USD 20,000, leading to massive losses within just a few days. The collapse of FTX affected the overall crypto market negatively, starting with the pioneering cryptocurrency.
Bitcoin dropped by almost 25% within a few days, going from USD 20,000 to less than USD 16,000. Although its price could stabilize between USD 16,000 and USD 17,000, there has been no recent bullish breakout.
The Price of Bitcoin Might Recover by Late 2022
The course of Bitcoin has lost value significantly over the last two weeks due to the collapse of FTX. Besides, there has been a further loss of confidence in the crypto market, preventing the price of BTC from recovering.
The price of Bitcoin may rise significantly, as there remain almost six weeks until 2022 ends. However, there are reasons for either an increase or a drop in the coming weeks.
Reasons for a Possible Increase in the Bitcoin Price
Bitcoin usually needs some time for its price to recover after suffering a considerable drop. However, the market has recently shown signs that it may be going upward again.
Besides, inflation has dropped in the US, suggesting that the Federal Reserve (Fed) may not raise key interest rates soon. That brings optimism to the crypto market, as those increases have caused Bitcoin to fall over the last few months.
Some Factors Might Prevent the Bitcoin Price from Increasing
There are also reasons against an increase in the value of Bitcoin by late 2022. Since the prices of cryptocurrencies have historically suffered losses in November and December, the same might happen again.
In addition, the loss of confidence due to the current crisis after the collapse of FTX is significant. There may be a further crash at this point, as many investors lost their money on the bankrupt cryptocurrency exchange.
It could take a little longer to overcome the crisis, as the stabilization phase might last several weeks. Therefore, the price of Bitcoin may rise insignificantly until the end of the year.
It Is Worth Investing in Bitcoin for the Long Term
Although the price of Bitcoin might rise by late 2022, the last weeks of the year might turn more neutral to the bears.
This time, it might be worth investing in Bitcoin for the medium and long term. Its prices are at their lowest level in a long time and have recently reached the bottom of the bearish market. An increase in the value of BTC in 2023 is a much more likely forecast.
By Alexander Salazar
