As the year draws to a close, the world's most famous cryptocurrency — Bitcoin is once again in the spotlight. This was reported by Zamin.uz.
In October, Bitcoin's price exceeded $126,000, setting a new historical high. However, by December, its value had dropped to around $84–85,000.
This situation has created a worried mood in the crypto market and raised the question, "Is this a simple correction or the beginning of a major crash?" Bitcoin's price is highly volatile, confirming once again that it is a high-risk asset.
Experts assess this decline as a technical correction, that is, a natural market adjustment. Nevertheless, in recent months, Bitcoin has shown significant sensitivity to changes in the global financial system.
In particular, the tightening of liquidity in the world market is putting pressure on cryptocurrencies. The US Federal Reserve's maintenance of high interest rates has also reduced demand for risky assets.
This has led investors to shift to safer assets, such as gold or government bonds. In November, this process intensified further and negatively affected Bitcoin's price.
Major investors, including corporate investors, have also become more cautious. For example, Strategy Inc., one of the major holders of Bitcoin,
has recently stopped purchasing cryptocurrency and prefers to increase cash reserves. This has strengthened the views that further price declines are expected in the market.
Analysts have varying forecasts for the future. Some predict that Bitcoin's price may fall to $70,000 or even $56,000 in the coming months.
Others say that if interest rates decrease and large investments resume, the price could return to the range of $120,000–170,000. There is a possibility of a change in the situation by 2026.
Political changes in the US and increased economic stimulus measures could be supportive factors for Bitcoin and other risky assets. However, for now, Bitcoin's price remains dependent on global economic policies and investor confidence.
This once again confirms its high-risk nature.
