Exchange CEO warns 2022 could see Bitcoin crash amid huge sell-off of Ethereum, BNB, Solana, Cardano and XRP

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Bitcoin and cryptocurrency prices have fallen sharply this week, with the combined value of the crypto market losing nearly $ 1,000 billion since its peak in November.

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The price of bitcoin has fallen to a low of just over $ 45,000 per bitcoin, a drop of over 30% from an all-time high of nearly $ 70,000 last month. Meanwhile, other major cryptocurrencies including Ethereum, Binance’s BNB, Solana, Cardano, and Ripple’s XRP also struggled, all dropping double-digit percentages from their highs.

Now, as bitcoin, ethereum, and other cryptocurrencies tumble in the face of tightening policy from the world central bank as well as global stock markets and other assets, the chief executive of the exchange U.S.-based cryptocurrency firm Kraken has warned that it believes the price of bitcoin could drop significantly in 2022.

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The price of bitcoin has struggled to hold onto the gains it made earlier this year, with its decline … [+] weighing on the price of Ethereum, Binance’s BNB, Solana, Cardano and Ripple’s XRP.

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“A lot of people see anything below $ 40,000 as a buying opportunity,” Kraken CEO Jesse Powell said in an interview with Bloomberg this week, adding that the price of bitcoin could drop below. of $ 40,000 this winter.

“I was personally buying when we fell almost $ 30,000 a few months ago. Lots of people have dry powder on the sidelines just waiting to come back to rock bottom prices. “

Earlier this year, Powell grabbed the headlines when he predicted the price of bitcoin could hit $ 100,000 before the end of 2021.

“It is difficult to know where [the bitcoin price] goes, “said Powell, but saying he’s still bullish on bitcoin for the long term.” When you look at a long term trendline for bitcoin and it’s just consistently rising. I always tell people, ‘If you are thinking of buying bitcoin, think of it as an investment of more than five years.’ “

Earlier this month, other bitcoin and crypto market watchers began to announce some of the more ambitious bitcoin price predictions. “$ 100,000 by the end of the year is a tough prediction to make. I think $ 100,000 could be the goal in 2022, but this year I’m not so sure,” said Matt Hougan, chief investment officer of Bitwise, in an interview.

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The price of bitcoin has trended downward last month, dropping over 20% in just … [+] the past 30 days and adding a larger crypto rout that affects Binance’s Ethereum, BNB, Solana, Cardano, and XRP.

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Others are taking an approach of monitoring the price of bitcoin as the US Federal Reserve and other central banks around the world prepare to scale back their stimulus measures from the Covid-19 pandemic.

“Bitcoin’s downward trajectory currently remains intact as market participants continue to assess fundamentals,” DailyFX analyst Tammy Da Costa wrote in emailed comments.

“For much of this year, rising inflation has supported bitcoin prices, pushing it to a new all-time high last month. However, with global policymakers now voicing a more hawkish tone, Bitcoin prices have stabilized above $ 45,000, which continues to provide support for the impending move. “

This week, the Federal Reserve said it plans to hike interest rates three times in 2022 and will speed up the liquidation of its massive bond-buying policy in the face of soaring inflation that has hit a rock bottom. peak in 40 years.

“Like gold and other safe-haven assets, investors have used bitcoin against rising inflation,” added Da Costa.

“With higher interest rates and a faster pace of reduction now expected to continue, further rate hikes could be an additional catalyst for longer-term price action. From a technical standpoint, the fact that prices have fallen more than 20% since the November high confirms that bitcoin has entered a bear market. While price action is currently trading within a well-defined range, bulls may find it difficult to regain control of the dominant systemic trend, at least for now. “

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