Warning! Why Bitcoin (BTC) could plunge again
Many wonder if the bottom of all markets has already been reached. For a crypto analyst, it is clear that if this has not yet happened, it will hit the crypto markets again.
Is Bitcoin going to drop below $ 5,000 again?
Crypto analyst Cole Garner believes that the global economy is far from the lowest and that this condition will also affect Bitcoin and other cryptocurrencies.
In a very long tweet, Garner quotes billionaire hedge fund manager Ray Dalio. He wanted to show where the world economy is headed. For Dalio, it is clear that the world is heading towards a depression, similar to that of the 1930s, which will bring years of recovery and will require a restructuring of the financial systems.
“Just to be clear: a recession usually results in a 30% to 40% drop in inventories, a big recession usually results in a 40% to 60% drop and a 60% to 80% depression. We haven’t even assessed the price of a recession. The way is still long. “
To be clear: a recession typically results in a 30% to 40% drop in stocks, a deep recession usually has a 40% to 60% drop, and a depression of 60% to 80%. We haven’t even estimated the price of a recession yet. The way is still long.
– Raoul Pal (@RaoulGMI) March 9, 2020
Garner says he interviewed 12 analysts he most respects because he wanted to see where the S & P500 was headed. His investigation concluded that the bottom is still far from being reached.
“There were big differences – but the overall expectation was about 50% lower than the all-time highs.”
Garner believes that Bitcoin and all other cryptocurrencies will be very strongly correlated with traditional markets in the short term and therefore warns everyone that Bitcoin could fall to $ 4,800.
But he also thinks that this fall will be a very good opportunity to buy BTC. Garner cites recent data indicating that there have been more Bitcoin whales and more stable coins issued since December 2017.
“If we give up, risky assets like BTC are likely to sell. The Bitmex liquidation machine does not make the same mistake twice. But Bitcoin could make small orders. It’s an overall bullish picture, but a dip could come first. If we go down, I’m a buyer from $ 5600 to $ 4800 …
I can also stock up on ETH as it nears the transition to proof of participation. ETH whales looking for yield will block many offers in the future. While not a fix, ETH BTC could outperform the next bull market. “