Observers Suggest Bitcoin Price Might Touch Bottom, Despite Crypto Market Crash

Cryptocurrencies ushered in a week of plummeting; Bitcoin was plunging to around $34,000 on January 21, while Ethereum also touched a low of 2,300 on the same day.

About $1.5 trillion has evaporated in total cryptocurrency market prices since November.

Backed by Tesla’s Elon Musk, Dogecoin is back in the top 10 of cryptocurrencies, as measured by the price data site CoinMarketCap.

The top 10 cryptocurrencies currently ranked by market capitalization have experienced varying degrees of decline within 24 hours. The most serious drop within 24 hours is the 8th-ranked Solana, a competitor of the Ethereum chain, which fell within 24 hours. up 14.17% and is currently trading at $86.77.

Bitcoin, the leading cryptocurrency, was down 18.21% in 7 days and was trading at $34,935.40 during the intraday.

Despite the sharp decline and collapse of the cryptocurrency as a whole this week, there are also cryptocurrency market professionals who believe that Bitcoin prices may have bottomed out by now.

Pankaj Balani, CEO of Delta Exchange, stated that:

"We expect BTC to find a bid around the 35K mark, close to 50% from the top. In the short term. We can bounce to challenge the $45,000-$50,000 zone but the overall outlook remains bearish as liquidity remains tight."

U.S. President Joe Biden’s administration is working on an initial government-wide strategy on digital assets for release next month.

Meanwhile, the U.S. Federal Reserve announced a high probability that it might raise interest in March amid greater discomfort with high inflation this year, as reported by Blockchain. News on January 5.

Economists expect a 25% point rate hike in March. The cryptocurrency market seems to be preparing accordingly for what is to come in the future.