An expert announces a dramatic drop in bitcoin to $48,000!

The forecast for bitcoin is getting darker and darker. According to recent analyses, the price of crypto could experience a significant drop. This alarming prospect has already begun to sow doubt among investors. With increased volatility and concerning market signals, the immediate future of bitcoin remains uncertain and raises many questions.

The stagnant growth of the Bitcoin network worries Jurrien Timmer

According to Jurrien Timmer of Fidelity Investments, the valuation of bitcoin relies heavily on the dynamics of its network. The analyst describes Bitcoin as “exponential gold.” This metaphor highlights the digital scarcity of bitcoin and its potential as a store of value. He explained that the increase in the price of bitcoin generally follows the power curve of its network growth, reflecting a development pattern observed in various technological innovations.

However, Timmer has recently observed a worrying slowdown in this growth. Although the price of bitcoin continues to rise, he notes a notable divergence between the value of the crypto and the expansion of its network. For him, this situation is worrying and could hinder the ability of bitcoin to reach new heights. He asserts that for the queen of cryptos to return to solid bullish momentum, a significant acceleration in the growth of its network is essential.

Bitcoin could fall to $48,000 according to Peter Brandt

While Jurrien Timmer is content to express concerns, Peter Brandt, an experienced analyst, presents a much more pessimistic outlook for bitcoin. Unlike those predicting a dramatic rise, Brandt says bitcoin's current bull cycle may already be over. Based on previous bull cycles, he sees a pattern of diminishing returns. For example, the 2011/2013 cycle saw an 82% reduction in gains compared to the 2010/2011 cycle, and this trend continued with similar decreases of 79% and 82% in subsequent cycles.

For Brandt, if this trend persists, the recent high of $73,777 could well represent the high point of this cycle. Additionally, Brandt issued clear warnings about a potential drop in the price of bitcoin. Currently, the flagship crypto is struggling to maintain the $70,000 threshold. The expert believes that if bitcoin falls below $65,000, it could quickly fall to $60,000, and if this level does not hold, a descent towards $48,000 is possible.

This outlook stands in stark contrast to the optimistic predictions of some experts like Mike Novogratz and Robert Kiyosaki, who envision prices reaching $100,000 or more. Investors are therefore called upon to exercise caution in the face of this bearish outlook.