An analyst who is well-known in crypto says that the market may see another major decline before it reaches its peak in 2023.
Guy, the pseudonymous Coin Bureau host, tells his 2.19 million subscribers that Bitcoin ( BTC ) could drop by up to 60% in the short term.
“The bottom will probably come sometime in the first three quarters of next year.” However, the bottom for Bitcoin could come at $10,000 or slightly less. Most altcoins could fall another 60% to 80%.
Guy believes that the crypto market will bottom in the first quarter next year if there is no Federal Reserve interest rate increase to lower inflation. Markets plummeted after a series of aggressive rate hikes in 2022.
The Federal Reserve will likely stop raising interest rates in the first quarter of next year, which is the main reason why crypto bear markets could bottom. Stopping does not mean lowering interest rates, but it will likely suffice to prevent crypto from falling any further.
Guy claims that one of the reasons he expects Bitcoin prices to drop is because of the performance of the stock markets, which Guy believes has yet to bottom.
The stock market is expected to drop another 20% to 30%, which would translate to a 40% to 60% drop in BTC price.” Another 20%-30% drop in the stock market is anticipated, which would result in a 40-60% drop in BTC price.”
Bitcoin’s current price is $16,521. Bitcoin could drop as much as 60% if its current price falls to $6,500. Bitcoin’s value would drop by 40% to $10,000.
Guy warns that there could be other events in crypto that could cause Bitcoin to crash below $10,000.
It is pertinent to emphasize that BTC may crash below $10,000. This could be caused by a crypto-specific factor, such as a ban on Bitcoin mining due to energy shortages or Mt. Gox creditors are selling the bitcoins they will receive in January. A deadly combination of liquidations, low liquidity.
Guy recommends that crypto investors protect their digital assets during volatile market conditions by keeping them safe in a hard wallet if they aren’t being actively traded. This will make sure they don’t get lost due to an unforeseen circumstance like the FTX crash.