Don’t Count On Massive Bitcoin (BTC) Capitulation, Says Top Crypto Analyst — Here’s Why
A prominent crypto analyst says he doesn’t see Bitcoin (BTC) triggering another meltdown amid fears that stocks and cryptocurrency markets could fall further.
In a new strategy session, the anonymous host of InvestAnswers tells its 440,000 YouTube subscribers that there is a limit to how far Bitcoin could fall, as many people who missed previous BTC rallies are poised to dive below $30,000 to enter the brand.
“Usually when people are predicting so much doom and gloom, it’s rock bottom. We saw the stock market [and] the S&P 500 rally from $3,800 back to $4,150. We’ve seen a rebound in technology stocks. We have seen the division of winners and losers.
I think the odds… to put it simply, it’s very difficult to judge at the moment. Again, I go back to [how] I know so many people who missed bitcoin the first time, the second time, the third time, the fourth time.
They’ve seen where it’s been, they’ve heard about it for the past few years, and they’re ready to buy it. Your finger is on the trigger the next time it hits $28,000, $27,000, $26,000, or $25,000.”
The analyst goes on to say that he doesn’t think it’s likely Bitcoin will fall to $25,000 unless a larger economic shock brings more volatility overall.
“I don’t think we can get to $25,000 because there’s too big a buying wall when it goes that far down. What could lead to this is a catastrophic event in the macro world or the stock market world, or a major capitulation…
My best opinion, the chances of us hitting $25,000 again for Bitcoin? Maybe 20%. But if there is a big macro shock, maybe 30%.”
The InvestAnswers host concludes his analysis by suggesting investors only need to invest a fraction in BTC. He also remains skeptical about how the Federal Reserve’s rate hikes and quantitative tightening (QT) measures could negatively impact asset prices.
“The smart money knows, the 10,000+ bitcoin buyers know this thing is so limited. Just buy a small piece. Invest 1-2% of your portfolio in Bitcoin. It’s a no-brainer for even the most risk-averse investors.
Therefore I think [a drop to $25,000] will not happen.
I expect there will be a bit more volatility and that is if the Fed surprises us as another wild card as well. If they hike rates higher than expected, or if QT really hurts the debt market, we could be in trouble.”
At the time of writing, Bitcoin is trading at $29,516, down over 4% over the past day.
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