The last few weeks have not been particularly glorious for bitcoin (BTC). The asset collapsed significantly, plunging the entire crypto industry into a significant downtrend. Almost all major cryptos were affected by the fall of bitcoin (BTC) in a context where their resurgence is rather expected. Particularly following the historic approval of the very first Bitcoin Spot ETF, the impact of which is not yet visible. In recent days, bitcoin has regained some color. This rise contrasts with the gloomy predictions of leading analysts in the evolving crypto industry that we will dissect in this article.
Arthur Hayes, the apostle of the fall of bitcoin (BTC) to $35,000!
Arthur Hayes, the former CEO of BitMEX, recently shared his bearish view of bitcoin’s near-term trajectory. In her post titled “Yellen or Talkin? ”, dated January 24, the investor predicts a potential fall of the flagship crypto. He believes that BTC could fall below $35,000. And here are his arguments.
Arthur Hayes discusses several factors supporting his projection. The first is the ongoing conflict in the Red Sea between the United States and the Houthis. According to him, the impact of this conflict cannot be taken lightly, especially since it could have the effect of causing an increase in inflation.
Consequently, he expects that Risk assets, like cryptos, react to inflation. This, while markets are speculating on a possible change of course by the Federal Reserve (Fed) in March, concerning an interest rate reduction to stimulate the economy.
In a context where the reduction of interest rates by the Fed is still a possibility, Arthur Hayes draws attention to another danger. Namely the possibility of increased shipping costs due to weather conditions. Enough to further exacerbate inflation in the latter part of the year.
The last axis of Arthur Hayes’ gloomy projections on crypto and bitcoin (BTC) particularly concerns the situation of the banking sector. The investor reports continued financial difficulties despite government support. He believes troubled banks could soon be in dire straits. In any case, he suggests that the decisions of Janet Yellen, the Treasury Secretary, will strongly influence liquidity issues and the fate of troubled banks.
Chris Burniske and his prophecy of a bitcoin (BTC) crash to $20,000!
Chris Burniske is a former executive at Ark Invest, the asset management company run by Cathie Wood. Speaking on the prospects for the price of bitcoin, the former official positioned himself as a prophet of doom. As the entire crypto industry looks ahead to a prolific year for cryptos and bitcoin (BTC), Chris Burniske sees the flagship crypto falling. This is at a much lower level than Arthur Hayes’ $35,000. According to him, no relevant resurgence of BTC over time is possible until the asset has touched $20,000. In other words, he sees bitcoin (BTC) at its January 2023 level.
The prospects of Chris Burniske, now a partner at Placeholder, go beyond the BTC halving planned for April. An event which suggests a prolonged recovery of the asset after the recent fall of 20%. While he announces turbulence for BTC, the expert anticipates an even more difficult trend for altcoins. Notice to investors, to whom he advises to exercise patience and caution, amid the upheavals of the crypto market.
Overall, Chris Burniske’s projections echo that of Il Capo of Crypto. This renowned crypto trader also analyzed the potential price trajectories of bitcoin (BTC), but in much more serious terms. Il Capo of Crypto sees the possibility of bitcoin (BTC) returning to $12,000. However, it concedes temporary respite to BTC bulls, highlighting a local bottom and setting a target range for a lower high.
Currently, the flagship crypto has reached a valuation of around $42,460 with bullish momentum at 1.58% over the last 24 hours. Despite its current positive situation, the immediate future of bitcoin (BTC) remains uncertain due to conflicting predictions and market dynamics. This means that some experts, despite everything, see a slightly more positive outlook for BTC.
Bitcoin pro Max Keizer tempers alarmist projections!
Although there is currently some pessimism about the outlook for bitcoin (BTC), some experts maintain their optimism. This is the case of Max Keizer, a prominent follower of the flagship crypto and advisor to Nayib Bukele, the resigning president of El Salvador.
Speaking about the tumultuous situation of bitcoin (BTC), the expert predicted a rapid rise of the asset to $50,000. If crypto has not yet reached this level, it is, he believes, because its momentum has been slowed down. Max Keizer explains this by the fact that Wall Street players, notably the CEO of Vanguard, obstructed the purchase of Spot bitcoin ETF. However, the authorization finally granted by the Securities and Exchange Commission to 11 companies to launch spot Bitcoin ETFs should accelerate BTC’s surge to $50,000.
When it comes to the long-term future of BTC, Max Keizer envisions a new “post-diminishing era” for bitcoin between 2024 and 2028. A period characterized by the emergence of bitcoin spot exchange-traded funds, facilitated by BlackRock and Wall Street.
In the meantime, the number of active Bitcoin wallets holding over $1 million worth of BTC has increased significantly. A situation which indicates an increased commitment of whales to the queen of cryptos. Although data from Santiment suggests that small Bitcoin traders are liquidating their holdings. Thus, more than 487,000 wallets holding around 1 BTC have been liquidated in recent days. This trend could mean capitulation among this group of crypto holders and potentially lead to a rebound in the price of bitcoin (BTC).
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