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From its current position, Bitcoin (BTC) might decrease by another 50%

The "bad winter" is having a noticeable effect as Bitcoin BTC might drop another 50% from its present level, putting Europe's energy issue to the test as BTC/USD failed to regain the $20,000 support level.

Photo by Maxim Hopman / Unsplash

The figures are at the peak of the last halving cycle's bear market in 2018 when FlibFilb correctly predicted the market bottom as BTC/USD set a floor price of $3,100. As the European energy crisis worsens, risk assets face a significant test where crypto suffers significantly depending on how diplomacy can prevail to avert a major emergency in 2023.

The price of Bitcoin BTC is highly associated with the traditional markets, especially the NASDAQ, which is currently under a lot of pressure from the Federal Reserve's monetary policy, the strong correlation, and outside economic forces. The volume base is currently at $11,000; $20,000-$10,000 without time-based history, as opposed to the past when the volume was attributed to the $3,100 bottom and an 85% corrective.

The legacy's correlation is crucial because Bitcoin hasn't existed in an inflation-driven economy and is now acting more like a risk-on asset than an inflation hedge. It also indicates a degree this time, but it will correct within the typical timeframe and with the typical percentage change to normal, so it is similar but slightly different.

The 1,000-day mark, or Q1 after the start of the new narrative, is when Bitcoin typically emerges from the bear market and marks the beginning of the cycle's halving-of-supply emission date.

Second, suppose things go well, and Europe navigates the winter economically. In that case, things will likely turn out well for the most part. Still, if things go poorly, there is a greater likelihood of dialogues that could bring stability in the short term and positively impact things, giving the scenario a two-thirds chance.

The market has surged into such events and quickly dumped them, but proponents believe the market will go upward. Digital history begins to operate similarly to the halving effect. The CPI data will drop around the same time, and while positive CPI data paired with a sell-the-news event may cause BTC to outperform in the short term, ETH is firmly positioning itself for the coming cycle.

While individuals supplying finance did not perform due diligence beyond speculating on the arrangement, the operating business space has grown exponentially, leading to cost-cutting. Although the 3AC collapse might be viewed as the result of naivety because everyone bought into their excitement and ignored the risk,

Furthermore, considering the values involved, it is dishonorable of financial professionals to disregard this as amateurish at best or careless at worst, given that they should not choose risk above development and recognize the volatility in the cryptocurrency market. While the Federal Reserve has the power, it can raise rates whether there is good or bad news.

While everyone forgets about the relationship between the EU and the U.S., if the EU takes a beating, the U.S. will suffer, imports will become more expensive, and demand will suffer. They may have scope to do so with good news, and bad news may mean they need to. It all depends on the winter in the EU.