Bitcoin (BTC-USD) has been bleeding for months due to tight liquidity conditions and targeted selling of high beta technology stocks. Low interest rates since the global financial crisis in 2008 have led markets to reach extreme valuations. Now, the decade-long bubble has popped, and assets are moving back to reality.
For most of Bitcoin's existence, it has benefited from low interest rates. With rates now rising, Bitcoin's price is suffering from the resulting uncertainty. In the near term, Bitcoin's Wave 3 Elliott extension is signaling a crash to $21k. In the long term, Bitcoin's Price Cycle outlook implies an 80% crash to $14k.
At BitFreedom Research, we believe the activities of the past 2.5 years will be remembered as the second dot-com bubble . The bubble popped in November 2021 when Bitcoin reached $68,990. Going forward, persistent sell pressure should kill any elements of the cryptocurrency market that do not provide tangible value.
While the underlying internet technologies that powered the turn of the millennium dot-com bubble were solid, an overabundance of investments into the space caused an eventual crash. This same process has afflicted the cryptocurrency market, and the crash is occurring right now: