"To the moon"! This "slogan" was heard very often in the previous months in the circles of retail investors (and not only), by enthusiastic fans of various cryptocurrencies. Until crypto-winter came. Values eroded, fortunes eroded, enthusiasm lost. And now, analysts are left scratching their heads, trying to answer the agonizing question: Will the value of bitcoin go to the sky, or to the bottom of the sea?
The bitter truth is that investors, while experiencing the ups and downs of the murderous roller coaster that cryptocurrency prices are attached to, are hearing analysts give conflicting predictions. Because at the same time, there are analyzes that predict a collapse below 14.000 dollars, while others give the basic cryptocurrency to exceed 500.000 dollars and the capitalization of cryptocurrencies to reach (hold on) 10 trillion dollars! Midsummer night's dreams in the midst of… (crypto) winter?
"Severe pain"…
At least in the short term, analysts see no light at the tunnel and market exit from crypto-winter. “There is more pain for investors in the short term as markets will need to find their way through this new outlook,” says CEO of cryptocurrency-focused hedge fund ARK36, Ando Paroian. But this is not the most pessimistic view.
Traders in the midst of the strongest shocks experienced during this time, are preparing for a "hammer" from the Federal Bank of the USA (Fed) which could cause a collapse "worse than 2008". The price of bitcoin tried to break the psychological barrier of $20.000, which it quickly lost, and analysts fear that if the Nasdaq retreats, it will drag the cryptocurrency down.
Cryptocurrency analyst Nicolas Merten says the tech indicator is poised for new dips, which he believes will push Bitcoin to new bear market lows. "If we include the fact that Bitcoin will remain neutral with the Nasdaq, (…) with our analysis we see a percentage drop from where the cryptocurrency is and that will take us towards the $13.600 to $14.000 area."
Giving a timeframe of the next few months to the first quarter of 2023, Merten predicts, based on his statistical model, that the Nasdaq could fall another 28%, which would take the market about 50% off its all-time highs. These percentages, now, can be transferred to the prices and course of Bitcoin and, consequently, to the rest of the cryptocurrencies.
…or endless joy?
But those aren't the only ones predicting severe pain for investors. There are those who believe that the main cryptocurrency will take further hits, remaining in a bear market in the short term. In the long run, however, they expect redemption after the pain, just as the rainbow is expected after the "storm."
The president and co-founder of bitcoin acquisition vehicle MicroStrategy, Michael Saylor, is more than optimistic about the future of cryptocurrencies in the long term. He predicts that the value of bitcoin will surpass that of gold within ten years.
In this case, theoretically at least, the largest cryptocurrency would have a value of $500.000 and a market capitalization of $10 trillion.
And those who consider it a "pyramid"
Among those trying to predict whether bitcoin will go up or down in price, there are those who point out that it simply doesn't… have a price. Among the arch-enemies, if not skeptics, is JP Morgan CEO Jamie Dimon, who has called bitcoin, ethereum and other cryptocurrencies “decentralized pyramid schemes,” adding himself to the likes of legendary investor Warren Buffett and “wingman » by Charlie Munger, or Microsoft co-founder Bill Gates.
"I'm a big skeptic of cryptocurrencies, which you call money, like Bitcoin," Dimon said before the US Congress, and continued: "These are decentralized pyramid schemes and dangerous."
SOURCE: newmoney