Experts Warn Bitcoin Price Could Crash to $12k

investopedia.com:

Some experts have warned that Bitcoin could experience a new low, sending its price down to $12,000. A series of macroeconomic events, such as the rise in the federal reserve rate and inflation data, have played a significant role in predicting the price of Bitcoin. The prediction has come at a time when the crypto market is in the red and the top cryptocurrency has lost about 60% of its value since its all-time high. At the time of writing, Bitcoin is trading at $18,992, a 6% decline from the last week.

The Federal Reserve has begun its two-day meeting on Sept.20, and it is expected that on Sept. 21, it will raise interest rates again by three-quarter points. If this happens, it will be the third consecutive hike. A recent report by Goldman Sachs economists headed by Jan Hatzius also predicts that Federal Reserve benchmark rate hikes might accelerate faster than expected. 

Amid macroeconomic chaos, a pseudonymous crypto expert, Doctor Profit, has warned that Fed's decision will bring a bloodbath in the crypto market. He tweeted, ''Please consider FEDs next decisions. 0.75 [rate hike] already priced in, 1bps and we see blood.'' He wrote that Bitcoin has price entered the bottom phase at current levels. He also posted a price-performance comparison between 2012-2016 and 2020-2022.

Twitter: Doctor Profit 

Another prominent crypto analyst Justin Bennett said that a bearish trend has been forming in Bitcoin since May when the crypto crash began. He has predicted that Bitcoin is about to see a sharp decline that will drag the price of the flagship currency back to previous bear market lows in 2018, which means it could drop to $12,000.

Bitcoin is often treated as a good hedge against inflation. That means inflation doesn't