Difficult macroeconomic conditions are resulting in slow crypto market activity. Most notably, Bitcoin’s price, the largest cryptocurrency, is moving very slowly. For a long time, it has been mired around the $19,000 to $20,000 level. It has lost almost 0.5% of its value in the previous 24 hours, trading at $19,082.

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The CEO of Midas Touch Consulting, Florian Grummes, explains how Bitcoin can escape its trading range.

The $10k barrier will be tested as Grummes predicts Bitcoin will go below the $18k support. He also thinks the worst-case scenario is Bitcoin reaching $6,000. Currently, the crypto market is experiencing a liquidity crisis, as stated by Grummes.

But once Bitcoin hits rock bottom, he says, it will rocket to new heights.

Grummes’s forecast of a financial liquidity crisis in 2022 as a result of negative macroeconomic conditions was spot on. Moreover, he accurately anticipated that Gold would do better throughout the crisis than cryptocurrency and the stock market.

Defining the Break Out in Bitcoin’s Price

Bitcoin’s popularity is dwindling as a result of the current global financial crisis. For inflation control, the Fed is using quantitative tightening. As a result, the cryptocurrency market is currently experiencing a “crypto winter.” During this crisis, Grummes predicts that the US dollar will be the safest currency to invest in.

According to Grummes, a crypto winter lasts anywhere between 25 and 27 months. One year into the crypto market winter, Grummes predicts another year before a true bull market emerges. He maintains his belief that the worst-case scenario is the testing of the $6,000 price level. Around the time of the next Bitcoin halving in May of 2024, he predicts a market upswing.

If Bitcoin Were to Get Government Support, Would It

Bitcoin and Ethereum, according to many analysts, will benefit from more transparent regulations. As a result, more money will flow into the cryptocurrency market from institutional investors. But Grummes thinks that central governments do not want Bitcoin to thrive. According to him, Bitcoin will suffer as a result of the government’s promotion of Central Bank Digital Currencies. There is a risk that Bitcoin’s expansion will be stunted by government oversight.

Source: Google Trend