Celsius Network chief executive Alex Mashinsky predicts Bitcoin can soar above $140,000 this cycle but only after surviving one last sell-off event.
The head of the crypto lending and borrowing platform tells his 106,700 followers that Bitcoin has so far survived two massive bearish catalysts in a short amount of time.
“We have seen two capitulation selling events for BTC in the past two months.
1. Retail FOMO (fear of missing out) bought the run-up to $65,000. Sold ~$3B worth.
2. Flash selling last week of ~$3B that included miners & China retail, some FUD (fear, uncertainty and doubt) selling. We are about to see the third and last wave…”
Mashinksy posits that the last wave of selling will come from funds that he predicts will take advantage of the $20 billion worth of GBTC (Grayscale Bitcoin Trust) shares that will be unlocked this month. He expects funds that want to capture price differences in the market (arbitrage opportunities) will short Bitcoin and purchase GBTC shares at a high discount. According to Mashinsky, the net result is $5 billion worth of sell pressure, which could drive Bitcoin below $30,000.
Analysts at JP Morgan predicted last month that the unlocking of GBTC shares could be a bearish catalyst as it gives the holders a chance to sell their coins. Investors who buy GBTC shares have to wait for a six-month lock-in period before they can sell their holdings.
Although the Celsius Network head is short-term bearish on the king crypto, he expects it to massively rally toward the end of the year after the sell-off.
“After this July sell-off, we should see smooth sailing for the rest of the year as we break new ATH (all-time high) on our way to the $140,000-$160,000 price range per BTC before correcting back to the $90,000 levels to close the 2021 year end.”
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Featured Image: Shutterstock/Bruce Rolff
