Where will bitcoin go from here?

Since the Fed rate hike on May 5, bitcoin has fallen to $29,000, which has been decimated relative to last year’s peak. Since last year, the virtual coin has been on a downward path, with this decline reaching 57%.

Over the past decade, bitcoin plunges have been a family affair, plunging from $19,783 to $3,122 in 2017, a drop of 84%.

This year, macroeconomic conditions are not optimistic, the Federal Reserve rate hikes, geopolitical conflicts, the new crown rampage led to a general decline in global financial markets, even the safe-haven gold, because of the higher U.S. dollar, the U.S. real interest rates rise and suppressed, digital currency has been considered a high-risk assets, the first to be sold off.

The 10-year U.S. bond yield has topped 3%, nearly doubling this year, and the dollar index has topped 104, its highest level in nearly 20 years, a major blow to digital currencies, as many investors believe a weaker dollar could increase their appeal.

According to Skilling CEO Michael Kammerman, “The cryptocurrency market has been relatively quiet for much of 2022. During periods of market uncertainty, traditional investors typically sell assets they consider riskier, such as digital currencies, and move their money into safer investments.”

Not only have digital coins themselves fallen, but shares of related public companies have plummeted in tandem, such as blockchain companies Hive and Riot and mining company Marathon Digital, which have nearly ankle-deep in losses since their highs last year.

The biggest push behind Bitcoin’s new all-time high price late last year was the prospect of Web3 development. The digital currency is considered the only currency that will pass in the future decentralized network, which gives its future a golden veneer. For Web3 and DAO, these decentralized developments, some believe this is the future trend of the Internet.

Musk’s acquisition of Twitter is also seen by some as paving the way for a decentralized Internet. Jack Dorsey, founder of Twitter, said, “Musk is taking Twitter back from Wall Street, which is the first step in the right direction for Twitter. In principle, I don’t think Twitter should be owned or run by anyone, and it should be a public product at the protocol level, not a company. The goal that Musk will create a platform of maximum trust and broad inclusion is the right one and the reason I chose him.”

Warren Buffett, the god of stocks, said at this year’s shareholder meeting “I don’t know if the price of bitcoin is going to go up or down in the next year, or five years, or 10 years. But one thing I’m sure of is that it’s not going to generate any value. Bitcoin is not a productive asset and it’s not going to produce anything tangible, but it has a magic that people put on a lot of things.”

Buffett also said he would not buy bitcoin even if it only cost $25.