By the end of 2021 Bitcoin has been going down. One can attribute this decline to the prospect of director interest rate hikes at several Central Banks due to a steady rise in inflation.
These prospects have been compounded in the first half of this year, 2022 due to a decline in the macroeconomic outlook. With this decline, many Central Banks, such as the Federal Reserve, were forced to change their stance to a policy of fighting inflation.
This decision created a flight to risk on the part of investors, looking for assets considered to be safer.
This flight caused a few waves in the cryptocurrency market, even causing one of the big blockchains, Terra, to collapse. After a while, some cryptocurrency service companies such as Celsius were forced to suspend withdrawals to prevent greater harm.
This ended up further exacerbating the already negative sentiment in the crypto market, leading to large devaluations like that of Bitcoin, which is currently near $20,000.
It is recovering from these values and we believe a recovery to the X1 zone is possible in an optimistic scenario. However, our overall view remains negative, as we believe a more pessimistic scenario may return, where we see the X2 zone as a target.
If it holds near the X2 zone, in conjunction with macroeconomic improvements, it is possible to see a recovery from there. If macroeconomic conditions remain negative, we may even see a further decline to the X3 zone
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