Why Bitcoin price still targets $50000 despite inflation woes

Since its inception, Bitcoin had a volatile trading history. Currently it is in the bearish phase with other equity markets. Let us see why Bitcoin price still targets $50000 despite inflation woes.

Bitcoin Price History & Present

Experts predicted Bitcoin price crossing $50000 even when it was trading at $623 per BTC and the prediction came true in 2021. It crossed the peak on $68000 in November 2021. However shortly after the peak, correction came and the prices tumbled down. The market price went as low as $36950.

However, the bearish phase and correction of market value didn’t deterred investors and they bought in the dip. Despite the 50 basis point rate hike, investors are waiting for a better level to re-enter crypto market for long term investment as Bitcoin is again moving upwards towards the goal of $50000.

Federal Reserve Policy

The comment by Dovish Fed member Lael Brainard yesterday affected the crypto market putting downward pressure on the price of Bitcoin. She said that, Central Bank will raise interest rates steadily and speed-up the balance sheet reduction, starting next month.

The tightening of monetary policy will bring inflation down, which is of paramount importance right now as per the Federal Reserve Governor. This aggressive policy path sent stocks and crypto assets to the back foot and boosted Treasury yields up to multi year highs.

Despite all this, when we look at the broader picture, there is still pretty much bullish trend going on. Investors are looking to enter the market at $44000 and as per the data many have already entered the Bitcoin purchase spree since the start of April. If the level of $43000 is not maintained, then we can see another influx at $40000.

Investors would jump to buy Bitcoin in such a dip and that would result in jump-starting the Bitcoin to the tune of $50000. However, there is no surety that it would move upwards only. BTC could continue under bearish phase and this downward trend would push back the market price of BTC in the correction range of $32000 – $35000.

Bitcoin Price Prediction

Some of the experts are hugely bullish on Bitcoin with predictions going as high as $100000 or above within the next few years. The past price hikes and movements suggest that Bitcoin price still targets $50000 before year end and $100000 in the coming years.

Technological update Taproot will pave way for improvements in the current system in terms of fee reduction, smart contract and swift transactions.

Overall, we could again see a bullish phase of BTC before the end of 2022.