On Monday, Bitcoin stock and other cryptocurrencies experienced relatively low levels of trading volume ahead of what might be a very active week. The cryptocurrency market continues to struggle in the aftermath of the devastating collapse of the FTX exchange a month ago, and market players are becoming increasingly pessimistic about the future.
Over the previous day, the price of Bitcoin decreased by 0.4%, reaching $ 17,033. This year, a selloff spurred by the unexpected collapse of FTX last month has resulted in the world’s most popular cryptocurrency continuing to trade at a price that is only one-quarter of its all-time high from November 2021. Not only did the failure of the cryptocurrency exchange cause prices of tokens to plummet (Bitcoin fell by 20% in a matter of days), but it has also increased the likelihood of more regulation and reduced institutional interest in the cryptocurrency field.
An analyst at the broker Oanda named Edward Moya stated, “Bitcoin seems to be trapped around the $17,000 range, and that could persist.” This “is the last trading week of the year that we will see full participation,” so it “may finally help Bitcoin have a more meaningful move,” he continued, pointing out that Wednesday might bring in a significant catalyst.
This catalyst is the following decision on monetary policy that the Federal Reserve will make. It is broadly anticipated that the central bank will decide to raise interest rates by 50 basis points, indicating a slowdown from the recent string of supersize increases of 75 basis points.
Since the link between digital assets and equities has strengthened in 2022’s challenging macro backdrop of high inflation and rising rates, this news will likely affect the stock market and drag cryptos along with it. The consumer price index (CPI) inflation numbers coming on Tuesday are adding to the packed schedule of economic data and news in the days ahead that could see Bitcoin follow the same path as the Dow Jones Industrial Average and S&P 500.
“You may see Bitcoin make a push for the level of $18,000,” said Moya. “If Wall Street is convinced that the Fed will be done rising after the February rate rise and nothing new breaks in crypto, you could see Bitcoin make a run for the level.” “Sellers might soon emerge and push to revisit the November lows,” said one analyst, “if the Fed suggests additional work may need to be done and if legislation seems catastrophic for Bitcoin.”
In a broader sense, the aftermath of the collapse of FTX has cast a shadow over the cryptocurrency market. And hints that the mood on Wall Street has soured on the once-hot crypto area flashed again on Monday with the release of a survey by Deutsche Bank of 856 participants in global financial markets. The Deutsche Bank conducted the survey.
Ether, the second most valuable cryptocurrency, fell 1.5% to $1,250 despite Bitcoin’s continued dominance. The value of alternative cryptocurrencies, often known as altcoins, such as Cardano and Polygon, fell by almost 2%. Memecoins were far further down in the red, as the value of Dogecoin fell by 8%, and the value of Shiba Inu fell by 3.5%.
Bitcoin Stock Price Prediction
The study, which the bank’s strategist Jim Reid conducted, found that almost 78% of respondents believed that it was more likely that Bitcoin’s price will be half next year than double, representing overwhelming bearishness from traditional finance. Given the current Bitcoin price levels, market participants regard a drop below $8,500 as more plausible than a recovery to $34,000, which was last observed in May. The percentage of respondents with a bearish outlook had increased from the previous year when it stood at 38% and was optimistic that Bitcoin’s price (Bitcoin stock) would double its previous level of roughly $50,000.
The study also reveals a widespread decline in interest in digital assets. Only 2% of people polled thought that instability in crypto assets will be one of the top hazards to market stability in 2023, ranking cryptocurrencies behind 25 other categories, such as risks to liquidity in private capital and assaults on energy infrastructure.
Featured Image- Megapixl @ Pietpuk283
Author Valerie Remorosa 
