Bitcoin (BTC) has fallen below the critical $20,000 support level, and the market is still searching for a probable bottom that will propel the first cryptocurrency to a fresh rise.
In an interview with Kitco News on November 11, Jeffrey Tucker, the founder of Brownstone Institute, predicted that the flagship cryptocurrency might revisit the $10,000 level after the latest downturn while stressing that Bitcoin has a long way to go to escape the bear market.
According to Tucker, the cryptocurrency market is now dangerous, and he cautions investors from purchasing during the downturn. Instead, he suggests investors wait for the crypto winter to flesh out before investing.
“I believe we have a long way to go before this one matures, and I don’t believe there is a magic formula for determining when that will happen based on the technological aspects of the business. “Right now, if you’re seeking to make money, I’d say it’s a very hazardous place to put your money because we might be heading back down to $10,000 or even below,” he added.
Tucker argued that the primary attention should be on the regulatory component, as it will affect the asset’s future price trajectory, given that Bitcoin’s value has been severely impacted by the current macroeconomic environment, driven by inflation and increasing interest rates.
He acknowledged that restrictions continue to tighten for the cryptocurrency industry, but said that a change in Washington’s political leadership would be optimistic for Bitcoin.
Tucker also said that conventional financial actors have no interest in the success of crypto, thus the desire to construct central bank digital currencies (CBDC).