The cryptocurrency market is undergoing one of its most devastating crashes in 2024. Bitcoin (BTC) has fallen below the $103,000 price level, leading to a substantial dip in investor sentiment. According to Alternative’s fear and greed index, market sentiment has dropped to the “extreme fear” level. Many wonder if the current crash will lead to Bitcoin’s price falling to its 2022 lows.

Will Bitcoin’s Price Falling Below $100,000 Lead to a 2022-Like Crash?

2022 was a particularly bad year for the crypto market. BTC price fell to the $15,000 level in November 2022, following the collapse of FTX. The FTX debacle is one of the biggest financial frauds of modern times, and the crash was likely a consequence of the whole ordeal. While the current market crash is concerning, it is unlikely that BTC will fall to the $15,000 price point.

The ongoing market crash is likely due to macroeconomic conditions. Federal Reserve Chair Jerome Powell said that slow economic growth and rising inflation could present challenges. The cautionary statements may have led to Bitcoin and the larger crypto market dipping, despite an interest rate cut.

Also Read: Cryptocurrency Crash Deepens: $1.3 Billion Wiped Out In 24 Hours

The crypto market may rebound over the coming weeks. We may be experiencing a delayed rally, following the 25-basis-point interest rate cut. CoinCodex analysts also present a bullish outlook for Bitcoin (BTC) over the coming weeks. The platform anticipates the original crypto to rise to a new all-time high of $142,263 on Dec. 25. Hitting $142,263 from current price levels will entail a rally of about 37%.

While it is possible that the market may recover over the coming weeks, it is also probable that we may enter a prolonged consolidation phase. Bitcoin (BTC) ETF inflows have slumped over the last few days, and ETF inflows are a key driver for the asset’s price. The market is still far from stable, and prices could swing in either direction.