The cryptocurrency market is undergoing one of its most devastating crashes in 2024. Bitcoin (BTC) has fallen below the $103,000 price level, leading to a major dip in investor sentiment. According to Alternative’s Fear and Greed Index, market sentiment has dropped to the “extreme fear” level. Many are wondering if the current crash will cause Bitcoin’s price to fall to 2022 lows.
Will Bitcoin’s price fall below $100,000 lead to a 2022-like crash?
2022 was a particularly bad year for the crypto market. BTC price dropped to the $15,000 level in November 2022after the collapse of FTX. The FTX debacle is one of the biggest financial scams of modern times, and the crash was likely a consequence of the whole ordeal. While the current market crash is concerning, BTC is unlikely to fall to the $15,000 price level.
Read also: Cryptocurrency crash deepens: $1.3 billion wiped out in 24 hours
The crypto market may recover in the coming weeks. We may experience a delayed rally, following the 25 basis point rate cut. CoinCodex Analysts Also Present Bullish Outlook for Bitcoin (BTC) in the coming weeks. The platform expects the native crypto to rise to a new record high of $142,263 on December 25. Reaching $142,263 from current price levels will represent a rally of about 37%.
While it is possible that the market may recover in the coming weeks, it is also likely that we may enter a protracted consolidation phase. Bitcoin (BTC) ETF inflows have fallen in recent days, and ETF inflows are a key driver of the asset’s price. The market is still far from stable and prices can swing in either direction.
