How Much Can Bitcoin’s Price Drop? Analyst Reveals the Expected Bottom Point That Can Be Considered Typical
Charles Edwards, the founder of the Bitcoin and cryptocurrency-focused hedge fund Capriole Investments, recently addressed the significant decline in the price of BTC. After reaching an all-time high around $74,000, Bitcoin has experienced a sharp decline, currently trading at approximately $62,812.
In his statement, Edwards explained that a normal decline during a bull market for Bitcoin typically amounts to around 30%. He also pointed out that in December, BTC achieved the longest earning period in its history, breaking previous records.
According to Edwards’ analysis, a 20% drop in price would bring Bitcoin down to $59,000, while a 30% decline, which is considered more typical, would lower the price to $51,000.
The crypto market is presently awaiting the Federal Reserve’s interest rate decision, which is scheduled to be announced today. Most experts predict that the Fed will leave interest rates unchanged, as the inflation rate in the US is nearing the desired levels set by the Fed, while the economy remains robust. Additionally, experts anticipate three interest rate cuts throughout the year, totaling 75 basis points.
*This information should not be interpreted as investment advice.