Contrary to optimistic forecasts of crypto market analysts, the price of Bitcoin has dropped significantly. Previously, experts assumed that it would continue to grow due to a number of favourable factors, such as strengthening interest of institutional investors, possible simplification of regulations in some countries, and an improvement in the overall macroeconomic situation. Many expected that these circumstances would help Bitcoin to consolidate at higher levels.
What caused the change
The sharp deterioration of the situation in the Middle East changed the mood on the market. The aggravation of the geopolitical situation led to increased uncertainty, and investors began to abandon more volatile assets, including cryptocurrencies. As a result, Bitcoin experienced a significant decline, demonstrating the vulnerability of the crypto market to external global factors.