Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin price could drop another 50%, according to this investment titan

Published 14/12/2022, 11:02
Updated 14/12/2022, 11:02
© Reuters.

© Reuters.

By Senad Karaahmetovic

While cryptocurrency investors continue to focus on the world’s largest exchange Binance and reported higher-than-usual outflows, one global investment giant believes the crypto winter is yet to go through its worst phase.

Matthew Sigel, Head of Digital Assets Research at VanEck, forecasts Bitcoin price falling to $10,000-$12,000 in the first quarter of the next year. The analyst sees the drop being fueled by a “wave of miner bankruptcies,” which could result in Bitcoin hitting “the low point of the crypto winter.”

“With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge. Ripple losing its SEC lawsuit (possible in Q1) may coincide with this final downdraft, which would take out nearly the entirety of the post-2020 halving bull market,” Sigel wrote in a blog post.

This drop will then be seen as a buying opportunity by many crypto investors, helping the world’s largest digital asset to recover to $30,000, Sigel added. The surge in Bitcoin price would come as a result of lower inflation, easing energy concerns, a better geopolitical situation, as well as due to a turnaround in M2 supply.

Sigel’s projection is based on the scenario of “a lack of bad crypto-specific news,” like the collapse of FTX. Hence, Sigel didn’t account for a possible collapse of the leading global exchange Binance, which is experiencing extremely high outflows in the last 48 hours.

Strong outflows forced Binance to suspend withdrawals of USD Coin.

Bitcoin is trading modestly higher today as bulls try to get back above $18,000.

 

Latest comments

Cyrpto biggest fraud in history
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.