Multiple Bearish News Strikes BTC's Fall Will Continue, Here’s How to Profit in Bear Market
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On January 24, Bitcoin continued its downtrend and hit $32,000, its lowest in 6 months along with the plummets in global stock markets amid the increased tension between Ukraine and Russia. The panic selloff in Bitcoin during the geopolitical conflict further confirms that BTC hasn’t yet been considered as a safe haven asset like real gold. Though BTC now has rallied back above $37,000, Bitcoin will still face headwinds based on the fundamental facts.
The Russian-Ukraine standoff will remain a tense situation: Russia might launch cyberattacks against government and industry computers inside Ukraine and U.S. political systems, while President Joe Biden is also considering the dispatch of up to 50,000 combat troops to Ukraine, which will eventually lead to a war between two major economies. The tension on the Russian - Ukrainian border continues to globally punish risky assets, we will see an extended selloff on worldwide riskier assets like bitcoin, as investors run to safe haven.
Amid the gradual economic recovery worldwide from the impact of coronavirus pandemic, fighting inflation seems to be the priority for most central banks. U.S. FED is expected this week to signal their first interest-rate hike for March. If the FED did take tightening actions against soaring US inflation, the U.S. dollar should surge and the crypto market may turn into a “crypto winter”.
The IMF (International Monetary Fund) released the latest World Economic Outlook on January 25, which shows its global economic growth forecast for 2022 is down from 4.9% to 4.4%, citing weaker prospects for the U.S. and China along with persistent inflation.
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