The head of one of the world’s most popular cryptocurrency platforms has issued a punishing two-year forecast for Bitcoin.
The boss of one of the world’s most popular cryptocurrency platforms has predicted that Bitcoin will not surpass its all-time high for the next two years.
The world’s best-known digital asset traded at around $69,000 ($99,000) in November, but it — like pretty much every other cryptocurrency — has been falling in value over the past few months.
Its value has fallen below $18,000 ($25,300) this month as global markets in general took an absolute slump amid rising inflation, rising interest rates and fears of a US recession in the coming year.
Bitcoin has recovered from its 52-week low to $20,707 ($30,027) as of 8am today.
Despite the hard times hitting crypto traders, Changpeng “CZ” Zhao, Binance’s founder and chief executive officer, said that anyone who invested in the digital assets just four years ago is still “very happy” with theirs return will be.
But in an interview with The guardhe predicted that it would take Bitcoin years to reach last November’s highs.
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“I think with that price drop from the all-time high of $68,000 to now $20,000, it’s probably going to be a while before we get back there. It will probably take a few months or a few years,” Mr. Zhao said Guardianadding, “No one can predict the future.”
He continued, “$20,000 is very low today in our opinion. But you know, if you told people in 2018, 2019 that Bitcoin will cost $20,000 in 2022, they would be very happy. In 2018/19 Bitcoin was $3000, $6000.”
He said it’s “normal” for Bitcoin to fluctuate as it has.
“If you look down [of bitcoin], at the moment it is higher than the last peak. Normal or not, I think as the industry is still definitely growing, price fluctuations are normal,” he said.
Fear of a global recession triggers panic
Throughout the year, the cryptocurrency has seen a bear run.
However, things took a turn for the worse last weekend as investors panicked after the US Federal Reserve hiked interest rates by 75 basis points.
This was in response to rising inflation – the latest May figures put US inflation at 8.6 percent, the worst since 1981.
It sparked fears of a global recession and crypto investors quickly retreated, leading to a mass sell-off and a drastic price drop for some of the world’s top blockchains.
At its bottom, the number one cryptocurrency, Bitcoin, fell to $17,601.58 ($25,300) Sunday morning.
That’s a big drop considering Bitcoin was trading at $36,141.33 ($52,000) early last month, according to CoinMarketCap.
In fact, the lowest price in recent weeks represents a whopping 74 percent drop in value since its November peak.
Now, all of Bitcoin’s gains over the past two years of the pandemic are all but wiped out — BTC hasn’t been this low since October 2020.
Although cryptocurrencies have endured multiple winters and price swings, one banking pro said this is the most extreme given how widespread blockchain is today.
Irfan Ahmad of State Street Digital in Asia Pacific said so Australian Financial Report: “This is the first time Bitcoin and other cryptocurrencies have gone through such an inflationary environment.
“It’s the fourth crypto winter and the hardest in the face of wider adoption – we call it the polar vortex.”
However, Mr. Ahmad believes that some of the most well-known digital tokens like Bitcoin and Ethereum will survive the winter.
“But in terms of an asset class, we think [crypto] is here to stay,” he told the publication.
“There will be an evolution of players and protocols in the market.”