Bitcoin could probably fall to $30,000 if the Inflation data of the United States comes out this week and it comes out higher than it was predicted. Said Alex Krüger, Aike Capital (Founder), an asset firm based out of New York.
January is generally a slow month when it comes to cryptocurrency, but this year has been rougher than past years on the market. The fall is due to some variables in the market. Normally, cryptocurrencies drop on the weekends, as there is less trading. This implies that any big sell-offs have more impact on the value.
Despite all, this drop is considerable. Bitcoin has lost a little over 40% of its value in the past three months.
Bitcoin is facing some hard times as the carnage in the crypto market continues in 2022 and the crypto cart has gone below the $2 trillion mark. Not just this, the number one digital token has dropped around 13% from its new highs, following the political turmoil in Kazakhstan, which is the second major miner of Bitcoin.
The market anticipates the widely followed consumer price index to rise to 7% over the year all December and about 0.4% month-end.
This rush highlights why the Officials from the U.S. Federal Reserve have been favoring the brisk standardization of their monetary policy.
The highest cryptocurrency has reached $40,000 by market value for the first time since last September. Dropping below $40,000 might trigger some crucial sell-off, which might also lead to some higher purchasing. One can never predict 100% in the market.