Despite gaining slightly more than 70% this year, Bitcoin (BTC), currently trading at approximately $28,400, is expected to decline below $13,000 before another rally.
Despite the leading digital asset’s drive towards $30,000, InTheMoneyStocksCom Chief Market Strategist Gareth Soloway predicts it will drop to levels not seen since November 2020. UBS’s acquisition of Credit Suisse, Switzerland’s second-largest bank, and the recent collapse of several U.S. banks, including Silvergate Bank, Silicon Valley Bank, and Signature Bank, lend credibility to the forecast.
According to an interview, Soloway gave Kitco News on March 29, the recent surge in Bitcoin’s value can be partly attributed to speculators moving their money out of institutions and into Bitcoin. But he warned that as the economy stabilizes, Bitcoin’s price will fall, possibly to under $9,000 by 2023.
“We’re back to square one with the banking disasters. We can’t predict how terrible it will get, but this could be a Lehman moment.”
He elaborated: “I predict that by the end of the year, it will have reached $12,000 to $13,000. First, we still need to wait for legislation, which is difficult given the current climate of ambiguity. That legislation is still keeping large money out and that individuals are still susceptible to utter terror is something we must bear in mind at the end of the day.”
Due to his 20 years of expert investing knowledge, Soloway accurately forecasted that Bitcoin would hit rock bottom in 2021. He continued that Bitcoin’s valuation has traditionally fallen in step with the stock market during economic downturns. Therefore, Bitcoin will likely be included in the selling if the S&P suffers substantial losses.
He elaborated: “Bitcoin’s price has traditionally followed the stock market downwards. Bitcoin will be swept up in the selling if the S&P drops as much as I anticipate.”
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.