Over the weekend, we wrote that bitcoin will continue to fall in 2022. We called the two nearest targets for the cryptocurrency - these are the levels of $ 34,267 and $ 31,100. As you can see, literally in two days the first goal has already been achieved, and the second can be achieved during the current week. No matter how hard bitcoin tries to keep from falling again, it should be understood that serious changes and transformations are taking place in the world right now, which cannot but affect the riskiest cryptocurrency market. Last week, the Fed raised the rate, the Bank of England raised the rate and there are even rumors that the ECB will risk raising the rate in the coming months. Thus, there is a global tightening of monetary policy. And for bitcoin, the lower the rate, the better the conditions. What will happen when the Fed also starts withdrawing excess liquidity from the economy under the QT program for $ 100 billion per month is quite difficult to imagine. However, the fact remains: the next crypto boom is over; everyone who had the desire and opportunity to earn has earned; now in the coming year, bitcoin can trade very low.
There are no grounds for the growth of "digital gold".
It's not just the US stock market that is falling, which is real. The cryptocurrency, "virtual" market is also falling. If at this time stocks that are backed by real assets are depreciating, then what can we say about cryptocurrencies that are not backed by anything? Many investors continue to believe that bitcoin will grow forever. Or at least it will grow in the long run. Maybe it is. But at this time, bitcoin is neither a means of hedging inflation, a highly profitable asset, nor a promising asset. Throughout 2022, many "experts" wrote that bitcoin would grow to $ 100,000 per coin, citing as evidence various charts, and various events that were supposed to popularize bitcoin as much as possible. However, millionaires and billionaires are mostly investing in bitcoin now, who have the opportunity to make large investments and wait for the price to rise for years. Ordinary people have not seen bitcoin as an opportunity to get rich quickly for a long time and pay attention to other cryptocurrencies and tokens that arise almost every week. The fact is that the younger the coin, the greater the growth potential it has. Bitcoin did not grow to $ 100,000 even when the Fed was actively pumping money into its economy and keeping rates at ultra-low values. Thus, unless something out of the ordinary happens, bitcoin will continue to adjust in 2022. The fundamental background for it remains extremely complex, and there are simply no positive factors. Yes, from time to time there are reports that one or another company is going to introduce the possibility of paying for bitcoin, but such news no longer causes a stir in the market. Bitcoin is used by a few people as a means of payment. And those who use it are unlikely to run to Gucci stores.
On the 24-hour timeframe, the quotes of the "bitcoin" dropped to the level of $ 34,267. Now, if this level is overcome (and it can be overcome already today), the fall will continue with a target of $ 31,100, which is near the lows of 2021. In principle, we can even expect a drop to $ 29,750, which is exactly the minimum.
