A market expert, Greg Dickerson, opened up about Bitcoin, the digital currency. He talked about how Bitcoin’s value can go up and down based on what the Federal Reserve, the central bank of the United States, is doing. He explained that Bitcoin was created after a big financial crisis in 2008. Since then, it hasn’t been a time when the Federal Reserve was making it harder for people to borrow money or when the economy was doing poorly.
In an interview with Thinking Crypto, Greg looked at the past and noticed that Bitcoin’s price tended to go down when interest rates went up. When interest rates went down, Bitcoin’s price went up. He mentioned that Bitcoin did well from 2016 to 2018, when things were stable. But in 2018, when the Federal Reserve started making it harder to borrow money, Bitcoin’s price went down.
“We’re holding onto that high from August during the Quant era in 2022. Looking at the February high, we can see a macro trend line if we consider the bigger picture and remove some of the clutter. We might head down and test this line if things don’t improve and the current situation continues,” he said.
He also talked about how Bitcoin had a rough time when the FTX exchange had problems in 2022. That caused Bitcoin’s price to drop for a bit. Greg said that Bitcoin’s price is in a holding pattern right now. Unless something significant changes, it might go down to around $20,000 or stay between $20,000 and $30,000.
He mentioned that if things like ETFs (a way for people to invest in Bitcoin) get approved or the overall economic situation changes, Bitcoin’s price could go up again. But it’s waiting to see what happens with the economy and the Federal Reserve.