How much more value could bitcoin lose in 2022? Here's what analysts forecast

The crypto market volatility saw the worst on Monday when bitcoin and other major cryptocurrencies saw a significant loss in value. Bitcoin price plunged below $21,000 on Tuesday morning, before stemming losses and trading at around $22,400. The meltdown brought the largest cryptocurrency in the world down to the level where it was 5 years ago.

In around 4 months, bitcoin has fallen more than half of its value when it was at around $49,000 in March 2022. There were reportedly signs of the downturn bottoming out in mid-May, by the inflation data in the US did not help the sentiment in the crypto market.

The recent dive peaked after US-based crypto lending major Celsius Network announced that it was putting all withdrawals on its platform on hold. It cited “extreme market conditions” as the reason behind the move.

While Bitcoin may already be down more than 60 percent from its all time peak of $68,000 that it touched back in November last year, there is fear that it could lose further value in 2022.

Bitcoin may slide down till $14,000 this year as per analysts, representing a significant fall yet to come. This would mean that it bottoms out at after losing around 80% from its peak value.

"In the next 670 days, BTC will capitulate in the next 6 months and hit cycle bottom ($14-21k), then chop around $28-40k in most of 2023 and be at $40k again by next halving," tweeted Venturefounder, a contributor at on-chain analytics platform CryptoQuant.

READ | These cryptocurrencies remained in green as bitcoin and other major ones crashed

(With inputs from IANS)