A popular crypto analyst claims that the crypto market could see another massive decline before hitting bottom in early 2023.
In a new strategy session on YouTube, pseudo Coin Bureau host Guy tells his 2.19 million subscribers that bitcoin (BTC) could drop 60% in the near term.
“The bottom of the wave will probably occur during the first quarter of next year. But the bottom for BTC could be $10,000 or slightly lower, so most altcoins could drop another 60-80%. »
Guy says the cryptocurrency market is likely to bottom in the first quarter of next year if the Federal Reserve stops raising interest rates to bring down inflation. An aggressive series of rate hikes in 2022 sent markets tumbling.
“The main reason the cryptocurrency bear market may bottom out in the first quarter of next year is because that’s when the Federal Reserve should stop raising interest rates. interest. Now, it is important to note that the stop is not the same as the decline, but it will likely be enough to keep the crypto from crashing further. »
Guy says one of the main reasons he predicts a drop in bitcoin’s price is due to the performance of the stock market, which he says hasn’t bottomed out yet.
“The main reason the low for BTC could be $10,000 or slightly lower is that 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 fall another 20-30%, which would translate to a 40-60% drop in the price of BTC. »
At the time of writing, bitcoin is changing hands at $16,521. A 60% drop from its current price would bring bitcoin down to as low as $6,500. A 40% drop would bring the value of bitcoin down to around $10,000.
Guy also warns that further events in the crypto industry could trigger a crash in Bitcoin price below $10,000.
“Now, it is important to point out that BTC could crash hard below $10,000. I suspect this would be due to a cryptocurrency-specific factor, such as the ban on bitcoin mining due to power shortages, Mt. Gox creditors selling the BTCs they will start receiving in January. . And of course a deadly combination of liquidations and low liquidity. »
Guy advises crypto investors to protect their digital assets during volatile market conditions by keeping them in a hard wallet if they are not actively trading them to ensure they are not lost due to an event unexpected like the collapse of FTX.
“If recent events haven’t been clear enough, it’s absolutely imperative that you keep any crypto you’re not actively trading in your personal crypto wallet as we approach true bear market lows. »