The price of BTC fell below $20,000 per unit over the past weekend. What financial specialists say
The world of cryptocurrencies is going through a moment of concern, after Bitcoin (BTC), Ethereum (ETH) and other ecosystem assets suffered a brutal fall that removed about $2 billion from the combined market in recent times.
Bitcoin, the industry’s flagship cryptocurrency, It is around US $ 20,700 per unitaccording to figures from CoinMarketCap.com.
The currency recovered 4% in the last 24 hours, but is well below its all-time high of $68,500 per unit reached in November 2021.
Just 7 months later, the digital currency crashed by roughly 70% and dragged down the entire market.
Against this background, various qualified opinions begin to emerge that see BTC even further below its current line.
Bitcoin: expert sees a dark future for the cryptocurrency
Ian Harnett, Co-Founder and Chief Investment Officer of Absolute Strategy Research, slipped that “we would continue to sell this type of cryptocurrency in this environment” when asked about the future of cryptocurrency
He noted that the situation appears liquidity game. “What we have discovered is that it is not a currency, it is not a commodity and it is certainly not a store of value,” he slipped in dialogue with CNBC.
According to Harnett, based on an analysis of recent cryptocurrency rallies, Bitcoin tends to fall about 80% from its record price.
As an example, he recalled that in 2018 the cryptocurrency fell back to $3,000 after reaching a peak of around $20,000 at the end of 2017.
Ian Harnett, Co-Founder and Chief Investment Officer of Absolute Strategy Research
Bitcoin drops to $13,000?
If this background is taken as a basis, and the maximum reached by BTC of $68,500, in 2022 its price “would come back to about $13,000”a “key support zone” for the token, according to Harnett.
“In a world where liquidity is abundant, cryptocurrencies are doing well,” the expert added.
Nevertheless, “when that liquidity is removed – and that is what the central banks are doing at the moment – it looks like those markets are under extreme pressure“.
The combined value of all cryptocurrencies plunged over $350 billion in the last two weeks.
According to Harnett, Bitcoin could drop to as low as $13,000 if past history of pullbacks is taken into account
Bitcoin does not rebound and worries investors
After what The Fed will raise its benchmark interest rate by 75 basis points for the first time in nearly three decades. last week, new economic projections revealed that the authorities expect interest rates to reach 3.4% by the end of 2022, their highest level since 2008.
For its part, uncertainty and fear grows among observers of the market despite this week’s bitcoin price rebound.
With the increase in interest rates by the FED, the crypto market succumbed practically in its entirety.
“The bear market is likely to continue until we hear from the Fed the first signs of a halt to aggressive policy tightening,” he said. Alex Kuptsikevich, Senior Market Analyst at FxProbeing quoted by Forbes.
“The thing to note is that there are major option expirations coming up in the next few days, so volatility can be expected, but the macroeconomic trend is likely to remain bearish until we see the Fed change or at least relax its stance in July,” he said. Joe Di Pasquale, CEO of crypto hedge fund BitBull Capita.
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