Bitcoin experienced a massive price drop since the beginning of 2022. However, in recent weeks, we have not only seen stabilization in prices, but also a price jump that gave hope for a renewed bullish activity in 2022. But is a Bitcoin explosion realistic in the next few months? In this article, we’re going to mention 3 reasons why Bitcoin is about to explode.
How did Bitcoin Price Perform in recent months?
The Bitcoin price saw a massive loss in the last few months. In November 2021, Bitcoin was still trading at $68,000 after Bitcoin had exploded in the previous months. However, in recent months we have seen heavy losses due to the bear market.
The Bitcoin price fell to $48,000 by the turn of the year. In 2022, this downward trend continued. Bitcoin price fell in January and February before recovering slightly in March and April. As a result, we saw extremely heavy losses in May and June and Bitcoin fell below $20,000. Since then, the Bitcoin price has been able to recover slightly.
Is Bitcoin Price up recently?
The Bitcoin price saw a slight recovery in the last few weeks. After falling below $20,000, we saw stabilization around the $20,000 level for a few weeks. In the last few weeks, Bitcoin has been able to rise again more strongly. At times, the price reached a value of over 24,000 dollars.
Above all, the increase in key interest rates by 0.75% by the US Federal Reserve Bank recently triggered an increase. The markets were in a very positive mood, as this makes it more likely that inflation, which is getting out of control, will be combated. Recently, the Bitcoin price suffered from these increases. But this time the markets were able to relax.
Top 3 reasons why Bitcoin is about to EXPLODE
The price has fallen sharply in recent months. Many investors no longer believe that the Bitcoin price can recover even more in the coming months. But a Bitcoin explosion in the next few months cannot be ruled out. In the following we want to present 3 reasons why the Bitcoin price can rise again in the next few months:
1. Financial market recovery
In recent months, the Bitcoin price has repeatedly shown a correlation to the prices on the classic financial markets. Normally, as an alternative asset, Bitcoin should increase in price when classic assets fail. The dependency on classic financial markets increased due to increased investments by institutional investors.
There may be signs of a recovery in the financial markets in the coming months. In the USA in particular, there are signs of a falling inflation rate and lower energy costs. The labor market is also showing very good data. Strong financial markets could also bring bitcoin back up.
2. Greater investment by small investors
Many retail investors have been very frustrated with the crypto market over the past few weeks. Due to the massive losses, many of these investors also sold and turned away from the market. If a market reversal persists, these investors could quickly re-enter the market and push Bitcoin higher again.
3. Increasing acceptance as an inflation hedge
In recent months, inflation has become an increasing problem in the US and Europe. This also ensured that the financial markets performed negatively. At a certain point, inflation also hurts the markets.
However, Bitcoin is an asset that can be used as a hedge against inflation and can be an alternative haven for investors in a currency crisis. If the Bitcoin price develops positively again in the next few months, Bitcoin could experience an explosion in price again in a phase of high inflation.
Is it worth investing in Bitcoin now?
Bitcoin is worth an investment, especially now. A Bitcoin explosion in the next few months is by no means certain. But an increase at the latest by the next bull market is extremely likely. Until then, you should accumulate a lot of Bitcoins in order not to miss possible price increases in the future.
