Bitcoin to Surge Over 15% but Investors are Still Fleeing the Market. Why?
Bitcoin to surge above 15% yet investors are still reluctant on investing in the crypto
The Bitcoin price has been dealing with a narrow trading range over the last few months, attempting to make a full recovery after plummeting into a series of dips. Bitcoin has repeatedly failed to break through the US$25K barrier. Almost 22,000 people predicted that its price would skyrocket next month. Bitcoin’s worst-case scenario involves a trading price of US$11,000. The largest cryptocurrency by market capitalization has tried and failed several times to break through the US$25,000 barrier. Bitcoin managed a mini rally just this Tuesday, climbing all the way up to a trading price just above US$23,300. That surge, however, was short-lived, as the digital asset experienced an immediate price correction. CoinGecko tracking showed Bitcoin changing hands at US$18,746 as of this writing. It is already doomed to end September with a price that is more than 50% lower than it was in the same month last year.
Bitcoin Price Forecast for the Next Month
In looking ahead to Bitcoin’s immediate future, both traders and investors are considering the volatility that is known to plague the crypto space. Members of the CoinMarketCap crypto community predict that the subject digital currency price will rise by more than 13% by the end of October 2022. That would put the price of Bitcoin at US$22,857, a significant increase over its current level. In data, a total of 21,873 users voted for the Bitcoin price prediction. As optimistic as this may sound, it could indicate that investors have already given up on the top cryptocurrency’s ridiculously bullish forecasts and have accepted its recent unimpressive performance.
Bitcoin’s Worst-Case Scenario
In 2022, crypto billionaire Mike Novogratz appeared to foreshadow the difficulties that both investors and the cryptocurrency market are facing. Using his Twitter account at the time, he stated, “This will be the year when people realize being an investor is a difficult job.” Bitcoin was in better shape at the time, trading around US$36,000. Its closest competitor, Ethereum, was trading at US$2,500 per coin. However, the crypto market has since taken a nosedive, with the crypto leaders losing nearly 55% of their respective values. With a full-fledged “bottoming out” still looming in the crypto space, some fear Bitcoin could fall to US$11,000.
The MTD performance of various assets provides some useful data in determining how the league-leading crypto managed to withstand pressure from the USD and other competing assets. The Dollar Strength Index (DYX) performed better than Bitcoin (0.83%), with returns of 4.24%. However, because the digital asset’s performance is measured against the USD, it follows that when the dollar outperforms all other assets, the cryptocurrency outperforms it as well, according to Arcane Research. Ethereum dubbed the “king of all altcoins” and considered Bitcoin’s main rival, was at the bottom of the performance chart with a 10.88% MTD performance.