• Bitcoin’s price dropped close to $27,000 after the CFTC’s crackdown on Binance.
• Analysts predict that Bitcoin will bottom out in 2023 after dropping 78% from its ATH, approximately 500 days before the 2024 halving.
• Despite regulatory FUD surrounding Bitcoin, the markets could not break below $10k and eventually climbed the wall of worry.
What is Happening with Bitcoin?
On Tuesday, Bitcoin, the largest cryptocurrency by market cap, fell close to $27,000 after reaching a recent high of $28,889. The drop was attributed to the Commodity Futures Trading Commission’s crackdown on Binance.
Bitcoin Price Trajectory
An analyst pointed out that the current price trends of Bitcoin are similar to those of 2019, where the cryptocurrency reached a bottom after deviating 83% from its all-time high (ATH) approximately 500 days before the 2020 halving.Similarly, it is predicted that Bitcoin will bottom out in 2023 after dropping 78% from its ATH, approximately 500 days before the 2024 halving.
Echo Bubble Comparison
The 2021/22 echo bubble exceeded the 2018 echo bubble by a multiple, and it is hypothesized that barring another black swan event like a third world war; this COVID caused black swan price action should not repeat itself.
Regulatory FUD
Another analyst drew parallels between present and 2020 where regulatory FUD surrounded bitcoin after COVID recovery causing markets to be hit with barrage of regulatory FUD from US & China regulators targeting CryptoHayes & Bitmex while Chinese government went after OKX & Huobi executives despite this markets could not break below $10k and eventually climbed wall of worry .
Conclusion
It is expected that Bitcoin will bottom out in 2023 barring any black swan events , and climb back up during consolidation phase despite regulatory FUD surrounding bitcoin ,the markets could not break below $10k and eventually climbed wall of worry .