Bitcoin dropped 80% from its ATH, ETH — 82%, and BNB — 74%. Isn’t it the right time to buy the dip and convert USDT to BTC? Who knows, maybe soon we’ll see another crash to $15,000. The only thing that is clear here is that a “discount” of 80% is a decent starting point.
USDT in 2022: Performance Check
As a result of the instability of the value of cryptocurrencies, market participants are actively investing in USDT, mainly backed by the US dollar.
So, since January 2022, investors have rapidly begun to get rid of their crypto assets. This was the result of a decrease in their value — in particular, the most popular cryptocurrency Bitcoin.
For example, Tether (USDT) reached a market value of $78.5 billion, just $3 billion above Ethereum, the second largest cryptocurrency in the world after Bitcoin.
Among the reasons for this interest in USDT is that they provide investors with the opportunity to earn high returns.
Market participants borrow stablecoins and use them as leverage to speculate on other assets. Thus, they can earn between 10% and 19% on loans that are fully secured. For many participants, this is more attractive during times of market volatility than buying classic cryptocurrency.
BTC in 2022: Performance Check
On February 21, 2022, Ethereum co-founder Vitalik Buterin announced that the digital asset market had entered the crypto winter. So, in November 2021, Bitcoin cost $69 thousand, and on June 13, 2022, it was already $17.7 thousand.
The initial May drop to the resistance zone of summer 2021 ($28-30k) was the result of the aforementioned crypto winter. A further drop to $18,000 occurred due to the Terra crash. Back then, all the major coins faced another drop of up to 50%.
And while BTC seems to recover from these occasions, many experts predict another fall to the zone of $10,000-15,000.
BTC Price Prediction: The Best and the Worst Scenarios
Now we have two possible scenarios:
- Bitcoin recovers from recession, crypto winter, various bankrupting procedures, and Terra crash, skyrocketing to $100,000.
- Regulators enter the industry of stablecoins, and the bottom of $8,000 would be our next stop.
The Most Optimistic Forecast
Many call Bitcoin “digital gold.” MicroStrategy gained historical highs after choosing BTC as a #1 asset. Such tech giants like Alphabet, Apple, and Microsoft are already in crypto.
What else can stop Bitcoin from hitting $300,000 one day? Crypto winter isn’t the end of the world. We’ve already faced such events in the 2013 to 2015 and 2017 to 2018 periods.
After that, BTC set up new ATHs one by one. And while everyone was expecting a $100k mark in the 2021 bull run, crypto enthusiasts are 100% sure that this time we’ll finally hit this point.
The Potential Returns You Can Get Considering the Forecast
In case you buy your first Bitcoin today, your starting point would be $23,500. When the price hits $100,000, you’ll make 4.25x to your investment. But what if you buy only a half or even 5 coins? Let’s calculate:
- $100 – $425;
- $1000 – $4,250;
- $10,000 – $42,500;
- $100,000 – $425,000.
The Most Pessimistic Forecast
Bitcoin falling to zero isn’t a fairytale. Once it happened in the event of technical problems on BitMax and BitMEX crypto exchanges.
In mid-2019, the price fell from $10,000 to $0.3. And just in a few months, the value of the asset dropped to 0 on the BitMEX exchange.
Of course, these failures are influencing BTC and the crypto market at all. However, according to well-known American investor Jim Rogers, our digital gold market cap is a bubble. While the US prints more cash every year, the bubble grows bigger and bigger.
In the event of a recession, we can see a drop to $8,000, experts say.
The Potential Returns You Can Get Considering the Forecast
If this forecast comes true, the Bitcoin you bought at $23,500 will fall by 66%. So, your invested funds will turn into:
- $100 – $33;
- $1000 – $333;
- $10,000 – $3,333;
- $100,000 – $33,333.
Conclusion
While the BTC’s drop to 0 is a rather fantastic story, you should be ready for another fall to $20,000. On the other hand, the current point is a very tasty price. So, head to your cryptocurrency exchange and buy your coin.