A closely followed crypto strategist says Bitcoin (BTC) will likely not ignite new rallies even if the Federal Reserve turns the money printers back on.
In a new video update, Nicholas Merten, the host of DataDash, tells his 511,000 YouTube subscribers that he believes the king crypto will drop to around the $14,000 area even if the Fed starts printing money again, which he says caused BTC’s price to spike in the past.
“Bitcoin, like other assets, is going through a period of time where the Fed can no longer rescue it with the kind of excess money it had in the past, and we need to keep that in mind.”
According to Merten, the top crypto asset by market cap is currently in the midst of a relief rally, and he expects it to crash back down to the levels it was when FTX, a former prominent crypto exchange, collapsed last November.
“I want to go ahead and again emphasize here that that’s what [I] think is going to happen. [I] think it’s a relief rally. It’s going to roll over and go back towards new lows or relatively close to the FTX collapse lows around $14,000 [or] $15,000.”
Merten also explains why he thinks former Coinbase chief technology officer Balaji Srinivasan’s recent million-dollar bet on Bitcoin will go awry.
“Talking heads like Balaji that are getting a little too confident in their bets, they got to be confident because the momentum is behind them now, they’re saying and convincing you of the idea that in order to hedge your wealth, you’ve got to get your money out of the bank. You got to get it into Bitcoin.
It’s almost guaranteed [they] put a million dollars there, therefore, it’s got to be real. Don’t listen to talking heads like [Srinivasan] who tell you to [put] absolutely everything or you’re [going to] lose all your money right now. The only time you should listen to that is when you have people warning you about taking excessive risks that could lead you to lose your money, like leverage trading.”
At time of writing, Bitcoin is worth $27,598.
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