Experts worry as Bitcoin slides below $20,000 in March second week

The crypto space was shaken as the Bitcoin market faced a chance of crashing after a drop in price in March 2023.

The second week of March witnessed an unnatural price decline of $20,000 for the first time in 2023 after its 41% rise between January and February as stated by an independent financial planner Jordan Taylor recording approximately $23,000 for the months.

The year started on a positive note for Bitcoin users, promising an estimated $35,000 by April 2023. Popular sites such as www.cryptogamblr.com, immediately started listing the top ten things about crypto that every crypto investor or enthusiast should know.  Mostly since people around the world started taking a keen interest in Bitcoins and their related markets.

However, Bitcoin experienced a fall of 4.61% by 15th March while recording only around $19,000-$20,000 in mid-March.

The crash from the highest of $69,000 in November 2021 to faltering prices in 2022 to below $20,000 by 2023 has alerted investors and reports state that the reason for the crash is the liquidation of Silvergate in March 2023, leading to the crypto market to collapse with a hovering fall below $920 billion globally.

Silvergate acts as a mediator

Silvergate accessed and enabled cryptocurrency services in 2016, allowing the market a steep rise by 2021.

As the pioneer leading digitalisation and decentralisation of currency through the availability of cryptocurrency, Silvergate acted as the mediator for crypto transactions. Serving mainly crypto transactions, the mass withdrawals and the fall of a crypto exchange led to the reduction of their operations and ultimate liquidation in March onwards.

The collapse contributed to the crashing prices yet was not the sole factor affecting prices. Coindesk reports state that unstable stock market values and increased rates of interest by US Federal Reserves are similarly responsible for mass withdrawals of investors resulting in a fall of 65% by April.

Bitcoin at present hovers around $28,000 in April, BTC changing each hour whereas other cryptocurrencies such as Solana, Cardano, Litecoin, and AVAX faced losses with prices falling below 10% and 11% for Solana and Cardano respectively in 2022.

Even Dogecoin went under by 5% in 2022 and has faced more crashes after the Elon Musk controversies.

What worries experts about the future of Bitcoin

The volatility of the market has experts worried about the future of Bitcoins. The estimated $100,000 target of 2023 surpassing the highest recorded $69,000 in 2021 seems unreachable with the recent events.

Some experts have advised avoiding investing in cryptos for the time being and stashing up cash instead, to wait for the stability to be restored before investing.

Others state that the volatile market has fluctuating risks and these risks will persist, but the rates will eventually be satisfied. In the case of bitcoins, short-term holders are more under threat compared to long-term holders.

2023 predictions are mixed, and while some experts insist on the rise of Bitcoins to $100,000 in 2023 or by 2025, some have negative opinions on this matter. The originator of Mobius Capital Partner, Mark Mobius estimates a fall up to $10,000 in 2023 while Matthew Sigel of VanEck estimates a fall up to $12,000.

On the other hand, banks like Standard Chartered have given an ultimatum of a fall of up to $5,000 in 2023 itself, a proposition that can be disappointing to investors.

Amidst this wave of concerns, April sees a stabilisation in the fluctuating values and Bitcoin prices can be restored to the averaging $30,000, currently fluctuating between $28,500 to $28,100 approximately.

Although there are suggestions to opt for alternatives to Bitcoin such as RENQ, experts have a strong belief that Bitcoin will still be going strong in all industries. The best option according to analysts would be to invest in smaller amounts over a considerable time to avoid impending losses garnered due to interest hikes, currency issues, or stock market problems.