Expert: In Q2, the main crypto coin may drop to $20,000

The price of bitcoin has dropped by almost 8% in the last 24 hours. Within a day, BTC hit an all-time low since last summer.

The coin is currently worth around $29,000, according to Coinmarketcap. The bitcoin exchange rate fell simultaneously with the US stock market.

According to the US Bureau of Labor Statistics, domestic consumer prices rose by more than 8% in the previous month, while core inflation surpassed 6%. The rise in prices was higher than previously predicted by analysts (8.1%).

“The Fed will continue to raise the rate, and, perhaps, in wider steps (by 0.75%) — such inflation cannot be slowed down by the indecisive actions of the regulator. Moreover, it is quite obvious that the Fed, with its soothing rhetoric, simply missed inflation throughout 2021,” said Artem Deev, head of the analytical department at AMarkets.

In his opinion, the increase in the Fed’s rate will be a prerequisite for investors to avoid risk. The expert believes that the capitalization of the cryptocurrency market and digital assets will fall. According to Artem Deev, there are no reasons for a significant increase in BTC yet, even with a technical rebound in the price of the coin, you need to prepare for its further fall.

“During the second quarter, marks at or below $20,000 per coin are possible,” Deev predicted.

BitRiver financial analyst Vladislav Antonov assesses the situation in the financial industry as uncertain due to the upcoming Fed meeting. The expert is sure that $29,000 is an important support level, after which the Bitcoin exchange rate may drop to $20,000.

Meanwhile, Cardano founder Charles Hoskinson criticized the actions of large investors in the falling crypto market. During a video broadcast on Twitter, he announced a “dystopian future” that would result from severe inflation and uncontrolled emission.

The crypto enthusiast believes that digital currencies are the cure for “a world economy that is unhealthy.” Hoskinson is confident that private investors are using cryptocurrencies in an attempt to abandon “an unfair global financial system.”

“Institutions are dumping their crypto as most organizations view it as a high-risk, high-reward asset,” the expert said, adding that “it has always been dangerous to invite people from Wall Street to the crypto market.”

Because of their financial strategies and hyperinflation, he said, institutional and venture capitalists have “already chosen their own destiny.”

“They are playing musical chairs with a global economy that will collapse. She can’t support herself anymore,” Hoskinson said.