Bitcoin Price Predictions: Where Will BTC Go After Crashing Below $40,000?

Here's where the experts believe Bitcoin will go from here.

Today has been an incredible day for prominent cryptocurrencies like Bitcoin (CCC:BTC-USD). Bitcoin is presently trading at roughly $38,400 per coin, significantly below the $40,000 mark. Almost the whole crypto market is down by double digits. Bitcoin price predictions are currently garnering a lot of attention.

There are a variety of reasons why Bitcoin and its cryptocurrency counterparts are currently in steep decline. One of the most important factors contributing to Bitcoin's slide has been the rise of adverse sentiment across risk assets. The Federal Reserve's recent interest rate hikes indicate that the current dovish monetary policy may be coming to an end.

That's bad news for risky stocks and speculative cryptos.

This coin is meant to be a digital gold that is unaffected by market fluctuations. Many others, however, see Bitcoin as a market hedge. Over the course of a 12-hour period, forced liquidations of Bitcoin futures totaled more than $250 million. That's a stunning amount, and it has some investors worried that leverage could play in exacerbating the downside of some of the most important cryptos.

Bitcoin Price Predictions

For context, BTC currently trades at $38,400.

• By June 2022, Nexo managing partner AntoniTrenchev expects BTC to be worth $100,000.
• Cathie Wood, a well-known growth investor, recently set a price forecast of $560,000 for Bitcoin in 2026.
• Guido Buehler, the CEO of Seba, a Swiss digital asset bank, has a valuation methodology that indicates Bitcoin is currently worth between $50k and $75k.

Bitcoin Mining Stocks Alert: Why Are MARA, GREE, SDIG, IREN, RIOT Stocks Stumbling Today?

Bitcoin mining stocks  are down sharply today as a result of a slew of bad news, including increased threats to regulate the cryptocurrency industry and the price of Bitcoin plunging below $40,000 for the first time since August.

Riot Blockchain (NASDAQ:RIOT), Marathon Digital (NASDAQ:MARA), and Greenidge Generation (NASDAQ:GREE) are all down over 10% today, matching the drop in Bitcoin's price. At the time of writing, the world's largest cryptocurrency is selling at slightly over $38,000 per coin.

Simultaneously, officials in the United States and Europe have increased efforts to regulate the cryptocurrency industry, with some advocating for the prohibition of energy-intensive proof-of-work Bitcoin mining operations.

What Happened With Bitcoin Mining Stocks

Bitcoin's price is dropping along with the rest of the cryptocurrency market. On Thursday night, the price of Ethereum , the second-largest cryptocurrency, dropped as well, erasing over $150 billion from the broader cryptocurrency market. Cryptocurrency losses follow this week's losses on Wall Street. The Nasdaq has down over 5% this week and is down nearly 12% for the month of January, placing it in correction territory. The S&P 500 index is down for the third week in a row.

During a congressional hearing, US Securities and Exchange Commission Commissioner Gary Gensler reiterated his threats to regulate the cryptocurrency market. Gensler has stated that he intends to introduce bitcoin exchange legislation later this year. The European Securities and Markets Authority (ESMA) proposed a ban on energy-intensive "proof-of-work" cryptocurrency mining earlier this week. The European Union should push the crypto industry toward the less energy-intensive "proof-of-stake" proofing procedure, according to the regulator.

Why It Matters

Companies that specialize in Bitcoin mining are suffering as a result of negative news and price reductions in cryptocurrency. Bitcoin's price has plummeted since last November, falling by more than 40% from a record high of about $69,000. Bitcoin mining businesses' stocks tend to move in lockstep with the price of BTC. The stock of RIOT has dropped 40% in the last six months, while the stock of GREE has dropped 67 percent.

The possibility of stricter regulations or outright bans on cryptocurrency mining is only serving to drive down the value of these companies' stock.

It's unclear where the price of Bitcoin and other cryptocurrencies will wind up in the future. While some bullish analysts have set a price objective of $100,000 for BTC-USD, bears believe the price will fall below $30,000 in the next months. Investors should also be aware that the Federal Reserve's plans to raise interest rates this year are putting downward pressure on Bitcoin.

Bitcoin mining stocks, like the rest of the cryptocurrency industry, are set to continue falling. Any regulatory action is expected to push shares of Riot Blockchain, Marathon, and Greenidge Generation even lower. Given the current state of cryptocurrency pricing and the industry's continued volatility, investors may want to stay away from crypto mining stocks for the time being. Before investing cash to these names, let the dust settle.