Bitcoin Trading Pundit Says Crypto Is Ripe For $440 Billion 'Bloodbath' As Rout Resumes
Crypto expert Nicholas Merten has shared insight into the future trajectory of Bitcoin, suggesting that the world’s largest and oldest cryptocurrency might see turbulent times ahead.
According to Merten, Bitcoin and other cryptocurrencies are on the verge of a huge bloodbath, as he cautions of a potential $440 billion reduction in overall market capitalization.
Crypto Poised For $440B Wipe-Out?
Nicholas Merten of DataDash predicts a crypto sell-off that wipes $440 billion from the industry market cap as several macro factors come together.
In a recent episode of his YouTube channel, Merten said he expects Bitcoin to experience an over 43% pullback from the current level to stabilize within the $15,000 to $16,000 range. The combined market cap for all crypto assets at press time is $1.08 trillion, according to CoinGecko. The crypto pundit predicts the cryptocurrency market’s total valuation could see a substantial $440 billion contraction in the near term.
“The best-case scenario here for those who’ve already positioned themselves is that we’re going to find support prior lows at around the $650 billion market cap range or for Bitcoin likely around that $15,000-$16,000 range.”
Merten bases his sombre forecast on liquidity contracting further due to the Federal Reserve’s continued hawkish tone, which has also taken a toll on equities.
Bitcoin has largely traded sideways, with BTC price declining 4.0% over the past week following the Federal Reserve’s hawkish message during its September meeting. The largest crypto asset by market capitalization changed hands Monday at around $26,044, a 2.1% drop over the last 24 hours. Ethereum (ETH), the second most valuable crypto, saw a 1.6% slip, remaining below the $1,600 mark.
Other Analysts: BTC Bull Run Ahead
Meanwhile, other Bitcoin chart analysts anticipate the BTC price to enter a new bull market in the near future.
Moreover, pseudonymous trader-cum-analyst Rekt Capital believes BTC’s current lull is a buying opportunity ahead of the Bitcoin halving next year. The analyst notes that previous halving events have proven to be super bullish for the Bitcoin price.
Other analysts are pinning their hopes on the U.S. Securities and Exchange Commission (SEC) potentially greenlighting a spot Bitcoin exchange-traded fund (ETF) in 2023. For instance, Mark Yusko, the chief investment officer and managing director of hedge fund Morgan Creek Capital Management, says the approval of BlackRock’s spot ETF would significantly increase buying pressure for BTC.
“I believe the ETF will be approved sometime around year-end… that will pave the way for a very large influx of capital,” Yusko said. “Let’s say one-tenth of 1% (of the predicted $30 trillion) comes in, that’s $30 billion… $30 billion on $100 (billion)? That will move the price,” Yusko opined during a recent interview.
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