Can the price of bitcoin fall below $30,000?

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Analysts at the investment company Invesco believe that the price of bitcoin has been declining for the past three months, as the bubble is deflating in the crypto market. According to analysts, this year the price of the first cryptocurrency may drop to $30,000. RBC-Crypto experts explained whether the asset could fall to this mark and what factors could lead to this.

NFT effect

One of the main threats to the price of bitcoin this year is the NFT effect, says Sergey Zhdanov, CEO of the EXMO crypto exchange. He referred to the maturity cycle (“hype cycle”) of new technologies from the analytical company Gartner, according to which the technology of non-fungible tokens is currently at the peak of popularity.

“There is a risk that there will be a revaluation of the NFT technology itself, which will cause disappointment in the community, this will no doubt have a negative impact on the value of bitcoin,” the expert explained.

Despite the danger of overestimating the NFT sector, bitcoin is highly likely to return to its all-time high sooner or later, Zhdanov is sure. In his opinion, this will happen, since the already realized bubbles in the crypto market, for example, around ICOs (primary token sales), did not prevent the asset from updating price highs.

“In the short term, we may see the price of bitcoin slightly below $30,000, which will be a signal for another huge purchase and, in turn, will push the rate higher,” Zhdanov added.

Two possible scenarios

This year, the implementation of two scenarios in the crypto market is most likely, says Cryptorg CEO Andrey Podolyan. According to him, the first scenario is a “sideways” movement of bitcoin in the range from $30,000 to $60,000. The second scenario is an update of the historical maximum and the achievement of bitcoin at $100,000, the expert predicted.

Podolyan also admitted that the value of the cryptocurrency could fall below $30,000, but this would be a short-term decline, which large investors and funds would buy back.

“It will be incredibly difficult for bitcoin to go below $25,000,” Podolyan added.

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