Bullish Bitcoin Hangs on Turbulent Political Standoffs

Bitcoin Drops $33K, Predictions to Hit $10K This Year
  • Crypto analysts debate the place of crypto over the next few weeks.
  • Digital currency may sink or swim depending on various factors in play. 
  • Most of these factors include geo-political tensions around the world.

The previous week has been good to the crypto community. Both Bitcoin (BTC) and Ethereum (ETH), the powerhouses of the crypto sector, are showing bullish signals. Accordingly, many investors experienced decent pumps. 

On the other hand, this week seems to be dealing strife to the crypto community. Just yesterday the Nomad Token Bridge lost almost $200 million in a crypto hack. In addition, Solana underwent a crypto attack just this morning. The latter left over 7,000 wallets drained of their assets. 

Presently, the crypto community is waiting with baited breath as crypto analysts foresee two possible outcomes for cryptocurrencies in the next few days or weeks. In detail, this forecast lies heavily on geopolitical factors. 

In particular, the first scenario points to greener pastures. Here, analysts expect to see cryptos rally and shoot past the previous dips over the past couple of months. The reason for this would be that investors are slowly shaking off the FUD to take on higher risks. 

One aspect that supports this theory is the fact that Bitcoin (BTC) and Ethereum (ETH) continue to show green signals. Not to mention, the number on the Crypto Fear and Greed Index indicates a higher number of 34, a significant increase to the single digits prevailing last month. 

In contrast, analysts say the other possibility is seeing new price lows fueled by geo-political issues. The biggest reason here is the US House Speaker — Nancy Pelosi’s visit to Taiwan, despite China’s warning. 

Another reason is the continued war between Ukraine and Russia. Recently, Russia is pushing more on the battlefront. The US’ arrival in Taiwan could spark a new crisis with China adding on to the ongoing Russia-Ukraine crisis. 

Adding on to the issue is the energy crisis faced by all of Europe. In line with the above problems, the rest of the world is also feeling the effects. The price of fuel, food, and utilities are increasing in various parts of the world. 

Thus, it is only natural to expect a possible backlash onto the crypto world as well. Will investors take on the challenge to brave higher risks? We will likely find out over the next few weeks. 

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