Financial Analysts Say Bitcoin’s Price Is Going to Keep Falling and Falling

Horrible news for investors in cryptocurrencies, prices are still dropping and might keep dropping for a while.

According to a statement sent to investors and seen by Insider, analysts for investment bank UBS are warning that the market might be entering another "crypto winter" as prices fall for the asset class.

At the time of reporting, the price of the virtual currency is around $42,500, a 40 percent drop from its high of $69,000 in November. Even though it is a notoriously unstable coin, analysts expect the floor to go even lower as winter sets in.

There are a lot of different factors at play. The price drop is believed to be caused by three main drivers.
The rise in interest rates from the Federal Reserve has negatively impacted other asset classes. The Fed might raise rates four times in 2022, according to Goldman.

Many investors seem to be realizing how volatile the market can be, according to the bank. The limitations of the technology make it harder to scale.

Increased regulation is one of the reasons why the analysts think the market is collapsing. They said in the statement that they will face bigger setbacks in the coming months. Some private entities have begun to say that they will no longer accept cryptocurrencies due to its flaws and dangers.
It creates a perfect winter storm for cryptocurrencies, and it might last for a long time.
Financial analysts have a terrible history of making crappy predictions that don't come true, so this should be taken with a big grain of salt. It is plausible that this is just more fear mongering.

If there is a long winter, you might want to bundle up your investments.

The start of a 'crypto winter' that sees prices crash could be the reason for the slump of the digital currency. There are three reasons why.

More on the bust of the digital currency.

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