Source: dailyhodl.com
A popular crypto analyst says the crypto market could see one more massive decline before bottoming in early 2023.
In a new YouTube strategy session, pseudonymous Coin Bureau host Guy tells his 2.19 million subscribers that Bitcoin (BTC) could decline by as much as 60% in the near term.
“The bottom will likely come sometime in the first quarter of next year. But the bottom for BTC could be $10,000 or slightly lower, and that most altcoins could therefore fall by another 60% to 80%.”
Guy says the crypto market is likely to bottom in the first quarter of next year if the Federal Reserve stops raising interest rates to draw down inflation. An aggressive series of rate hikes in 2022 caused markets to plummet.
“The main reason why the crypto bear market could bottom in the first quarter next year is because this is when the Federal Reserve is expected to stop raising interest rates. Now, it’s important to note that stopping is not the same as lowering, but it will likely be enough to prevent crypto from crashing further.”
Guy says one of the main reasons he predicts a drop in Bitcoin price is due to the performance of the stock market, which he says has yet to bottom.
“The main reason why the bottom for BTC could be $10,000 or slightly lower is because the stock market has yet to find its bottom and the crypto market is highly correlated to the stock market. The stock market is expected to drop by another 20% to 30% which would translate to a 40% to 60% drop in BTC price.”
At time of writing, Bitcoin is changing hands at $16,521. A 60% decline in its current price would bring Bitcoin to as low as $6,500. A 40% decline would put Bitcoin’s value at about $10,000.
Guy also warns that other events in the crypto industry could spark a crash in Bitcoin’s price below $10,000.
“Now it’s important to stress that BTC could flash crash lower than $10,000. I suspect this would be due to a crypto-specific factor such as a Bitcoin mining ban due to energy shortages, Mt. Gox creditors selling the BTC they’ll start receiving in January. And of course a deadly combination of liquidations and low liquidity.”
Guy advises crypto investors to protect their digital asset holdings during the volatile market conditions by keeping them in a hard wallet if not actively trading them to ensure they are not lost due to an unforeseen event like the FTX collapse.
2:37: “If recent events didn’t make it clear enough, it is absolutely imperative that you keep any crypto you’re not actively trading on your own personal crypto wallet as we approach the true bear market lows.”
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