Over the past few days, the cryptocurrency market has had a significant selloff. The price of Bitcoin (BTC) has been at its lowest point since February 2024, dropping below $52,000. In addition to crypto, the world’s stock markets have collapsed, with Japan suffering its greatest losses since 1987.
Also Read: Top 3 Cryptocurrencies To Watch Under $0.50
Bitcoin’s Price Plunge: Market Turmoil and Crypto Recovery Outlook
Source – SkyNews
Potential Bitcoin ETF Liquidation
According to prominent trader and economist Peter Schiff, the BTC price dip could trigger a mass Bitcoin ETF liquidation. In such a scenario, Schiff stated, “brace for a Crypto Black Monday.” Schiff further noted that BTC ETFs could fall 15% and dip 30% from their January figures.
When Will the Cryptocurrency Market Recover?
Source: Medium
The latest cryptocurrency market dip is likely a combination of various factors. Each of them has varied levels of influence, and here are the most important aspects to consider today:
Escalating tensions between Iran and Israel
Federal Reserve’s ambivalence about interest rate cuts
Geopolitical tensions in the Middle East
Because of these reasons, it is hard to estimate a time frame, but our hopes are still high as we closely monitor the situation.
Also Read: Top 3 Cryptocurrency Billionaires: Here’s How They Made It Big
Market Recovery Outlook
The cryptocurrency market is unlikely to recover until global tensions cease or the Federal Reserve clearly indicates when investors can expect an interest rate cut.
CoinCodex data suggests that Bitcoin (BTC) could reclaim the $60,000 level in the next few days. The platform also expects BTC to hit a new all-time high very soon.
Given the current state of affairs in the cryptocurrency market, this forecast might not come to fruition and may change shortly. We’re curious to see how the market will react.