According to various analysts, it is conceivable that the Bitcoin price will hit the psychological level of $ 20 thousand again in the short term. This would be the case if the United States is unable to give the economy a ‘soft landing’.
There is a chance that Bitcoin price will fall back to 20 thousand dollars
It is increasingly expected that the crypto and stock market recovery we have seen this year will turn into a bearish market. This is because confusion is growing about how the new US macroeconomic data will affect market sentiment. The Bitcoin price started this year with an increase of more than 40 percent, but many analysts expect February to be a disappointing month.
The Dutch crypto analyst Michaël van de Poppe therefore says the following:
I think people need to realize that if there is no soft landing, the markets are likely to see a sustained decline.
The analyst pointed out that interest rate hikes by the Federal Reserve could push America into recession. If so, it is likely that Bitcoin’s price will fall sharply, possibly as far as the $20,000 mark.
Much depends on the CPI data
The expected outcome of consumer price index (CPI) data for January, expected on February 14, will have a major impact. If inflation slows less than expected, that would be bad news for both the crypto and stock markets. On the other hand, it would push the Dollar Index up. It is therefore important to keep a close eye on the DXY index in the coming period.
