The price of the first cryptocurrency may continue to fall, but will reach another all-time high in the next 24 months, says Meltem Demirors, director of strategy at CoinShares.
For us at @CoinSharesCo the view is we are going to stay where we are for a while. There are no near term upside catalysts. We have yet to see #bitcoin in a #recession,” says @Melt_Dem. “Certainly expect more pain ahead for tech stocks, growth and also #crypto.” pic.twitter.com/3dQ7ke9tA5
— Squawk Box (@SquawkCNBC) July 11, 2022
She recalled that bitcoin has always been a “cyclical asset” with drawdowns from peak to low in the range of 80-90%.
With current digital gold prices about 65% below the November 2021 all-time high, “there is still room for some correction,” Demirors said.
At the same time, she does not expect the rate to fall below $14,000, indicating a strong support level at $20,000.
“In the next 24 months, we will see new all-time highs for bitcoin,” Demirors said.
However, the reversal of the price trend will occur after some time, since “no growth catalysts” are yet visible, the expert specified.
In her opinion, in the conditions of the current bear market, a large number of cryptocurrencies will actually cease to exist.
“There is a long trail of crypto assets that I think will drop to zero as they have no long-term prospects. We saw a similar process in the shares of technology companies,” said Demirors.
Earlier, the head of Galaxy Digital, Mike Novogratz, predicted that the recession in the cryptocurrency market would last for about 18 more months. He also does not expect Bitcoin to fall below $14,000.
According to a Bloomberg survey, the majority of investors consider the price of the first cryptocurrency to fall to $10,000 more likely than a return to around $30,000.
Recall that in 2021, Demirors predicted the growth of bitcoin to $100,000 following its results.
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