Bitcoin (BTC), despite gaining slightly more than 70% so far this year, presently trading at roughly $28,400, is predicted to fall below $13,000 before another rally.
The latest forecast comes from the Chief Market Strategist of InTheMoneyStocks.com, Gareth Soloway, who believes that in spite of the flagship digital asset’s current push towards $30,000, it will plummet to levels not seen since November 2020. The prediction also comes amidst recent bank failures in the United States, including Silvergate Bank, Silicon Valley Bank, and Signature Bank, and UBS’s takeover of Credit Suisse, formerly the second-largest bank in Switzerland.
Soloway stated in an interview with Kitco News on March 29 that the ongoing banking crisis has resulted in investors pulling their funds from banks and investing in Bitcoin, contributing to its recent rally. However, he noted that as the financial system becomes more stable, Bitcoin’s value will decrease, potentially dropping to as low as $9,000 in 2023.
“This is a basic financial crisis 2.0. We don’t know how bad this is going to get… this is like a Lehman moment potentially.”
He added:
“By the end of the year I think it will at least hit $12,000-$13,000. The basics of this are that number one we have to still wait for regulation so especially with the uncertainty. <…> Ultimately we have to remember that that you’re at a point where regulation is still keeping big money out and that people are still subject to absolute fear.”
Bitcoin previously decreased in tandem with the stock market
Soloway correctly predicted the Bitcoin bottom in 2021, and his two decades of professional trading experience have made him a respected voice in the industry. He further stated that historically, Bitcoin’s value has decreased in tandem with the stock market during times of economic downturn. Therefore, if the S&P endures significant losses, Bitcoin will likely be caught up in the selling.
He added:
“If you look historically at Bitcoin, it has gone down when the stock market has gone down. If the S&P dumps as much as I think, Bitcoin will get caught up in that selling.”
Despite his near-term bearish stance, Soloway remains a long-term Bitcoin bull. He believes that Bitcoin’s value will initially drop due to the ongoing banking crisis and potential stock market sell-off, but it will recover and continue its long-term growth trajectory.
Watch the full interview below:
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