Cryptocurrency market experts talked about what has a decisive impact on the value of the flagship cryptocurrency, Bitcoin (BTC). Experts assured: in fact, the price of a virtual asset is formed from a combination of numerous factors. According to them, the BTC rate can overcome the $25,000 mark in the coming weeks.
Analysts recalled that the price of bitcoin may take longer to recover than investors would like. This is also one of the developments in the scenario that is possible. BTC has been hovering around $20,000 over the past few weeks after the coin lost over 60% of its value from its November 2021 peak.
Experts noted that now the market is dominated by negative sentiments that adversely affect the value of the virtual coin. Investors refrain from risky investments, aggravated by the negative background after the collapse of well-known crypto companies such as Three Arrows Capital (3AC), Terra (LUNA), and Celsius Network.
In addition, the rising level of global inflation directly impacts the price of bitcoin. Analysts assured that this could have been avoided if not for the aggressive policy of the US Federal Reserve System (FRS). However, the increase in lending rates played a negative role in shaping BTC prices.
The experts also emphasized that the tense situation between Russia and the United States can also be named as one of the reasons affecting the value of the flagship cryptocurrency.