A popular crypto analyst says he does not see Bitcoin (BTC) triggering another meltdown amid fears that stocks, as well as the cryptocurrency markets, could continue to drop.
In a new strategy session, the anonymous host of InvestAnswers tells his 440,000 YouTube subscribers that there is a limit to how far Bitcoin could fall because many people who missed out on previous BTC rallies are ready to jump in below the $30,000 level.
[adinserter block="1"]“Normally when people predict so much doom and gloom, it is the bottom. We’ve seen the stock market [and] the S&P 500 rally off of $3,800 back up to $4,150. We’ve seen tech stocks rebound. We’ve seen the bifurcation of winners and losers.
I think the odds… simply put, it’s very hard to price them right now. Again, I go back to [how] I know so many people that missed Bitcoin the first time around, the second time around, the third time around, the fourth time around.
They’ve seen where it was, they’ve learned about it over the past couple of years and they’re ready to buy. Their finger is on the trigger next time it hits $28,000, $27,000, $26,000, $25,000.”
The analyst goes on to say he doesn’t think it’s likely that Bitcoin will drop as low as $25,000 unless a major economic shock brings about more overall volatility.
“I don’t think we can get to $25,000 because there’s too much of a buy wall if it goes down that far. What could cause that to happen is a cataclysmic event in the macro world or the stock market world or a big capitulation…
My best opinion, the odds of us hitting $25,000 again for Bitcoin? Maybe 20%. But if there is a big macro shock, maybe 30%.”
The InvestAnswers host concludes his analysis by suggesting investors only need to make a fractional investment into BTC. He also remains wary of how the Federal Reserve’s interest-rate increases and quantitative tightening (QT) policies could negatively affect impact asset prices.
“The smart money knows, the 10,000-plus Bitcoin buyers know this thing is so limited. Just buy a little piece. Put one to two percent of your portfolio in Bitcoin. It’s a no-brainer for even the most risk-averse investors.
That’s why I think [a drop to $25,000] is not going to happen.
I do expect there to be some more volatility, and that is if the Fed also surprises us as the other wild card. If they jack rates higher than expected, or if QT really hurts the debt market, then we could be in trouble.”
At time of writing, Bitcoin is trading for $29,516, down over 4% in the past day.
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