These days, some experts are juxtaposing the Dot-Com Bubble to the current crypto winter that’s pushing digital assets to plummet massively. Since climbing to almost $70,000 in late 2021, flagship crypto Bitcoin has now fallen under $25,000.
Relating to the Dot-Com Bubble, some companies survived and eventually grew their brands into technological powerhouses. The same could happen now as a saturated crypto market is experiencing a survival-of-the-fittest stress test.
As the extreme volatility continues to remain, there is uncertainty regarding the sector’s future; several analysts claim that the 2022 crash is expected, citing it as a growth trajectory.
According to Economist and founder of HS Dent Publishing, Harry Dent, crypto is the ‘next big thing.’ Still, the market’s growth will mirror the dot-com bubble that saw major stocks like Amazon crash before rallying to record highs.
In the ‘Rich Dad Radio Show’ appearance, Dent also noted that the Bitcoin (BTC) crash might be the end of the crypto market, but that would not be the case. He compared the cryptocurrencies, Bitcoin to Amazon, the new dot-com retailers that were the rave only the last part of the 90s bubble and were the epitome of it. Amazon led that bubble and crashed 95% before it climbed 3,500 in the next boom.
Crypto Market Turmoil
Notably, the crypto market has thousands of cryptocurrencies. It is a general consensus that once the sector matures, established assets like Bitcoin stand out, similar to Amazon and dot-com companies. In contrast, cryptocurrencies with no utility will be washed away.
Due to rising inflation and the Federal Reserve’s interest rate hikes, Dent had projected that there would be a historical market crash in 2022. However, he believes the crash doesn’t need a trigger, just like the tech bubble burst in 2000 that occurred in an environment without a recession and any economic slowdown.
Currently, it’s not just digital assets that are suffering from the current macro condition but also stocks and bonds. Inflation fears and recession forecasts continue to deteriorate the capital markets, instilling a risk-off sentiment and sparking heavy sell-offs in both assets.
Bitcoin Price Forecast
The Economist affirms that Bitcoin would be the worst-hit asset while projecting that the crypto will dive to about $7,000. He also mentions that Bitcoin and the equities markets have struggled in 2022, with the top coin still struggling to stay above the $20,000 level.
At the time of writing, Bitcoin is trading at $21,635, gaining less than 1% in the last 24 hours. The current market cap stands at $454B with a 24-hour trading volume of $32B, up by 1.72%
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)