A Crypto Analyst Warns of Potential Market Collapse
A popular crypto analyst, Nicholas Merten, is cautioning that the total market capitalization of Bitcoin (BTC) and other cryptocurrencies could experience a significant decline. Merten, who hosts the YouTube channel DataDash, warns his 512,000 subscribers that the overall crypto market cap may plummet by a staggering $440 billion from its current value.
Additionally, Merten suggests that Bitcoin could see a drop of more than 43% from its current price. He states that the best-case scenario for those already invested is finding support at previous lows, around the $650 billion market cap range or approximately $15,000-$16,000 for Bitcoin.
Merten’s Market Cap Prediction
As of now, the total market cap for digital assets stands at $1.092 trillion, while Bitcoin is trading at $26,584. Merten’s forecast is based on further liquidity contraction due to the Federal Reserve’s hawkish stance. This monetary policy is also negatively impacting stock performance.
Merten questions whether people will rush to invest in Bitcoin during times of increased uncertainty and volatility if major tech stocks like Microsoft and Apple are declining along with rising bond yields and a scarce dollar. He argues that Bitcoin tends to perform well when there is monetary acceleration and an increase in new money and credit in the economy.
Hot Take: Crypto Market Faces Potential Collapse
In light of recent developments in the global economy and stock market performance, crypto analyst Nicholas Merten warns that the total market capitalization of cryptocurrencies may experience a massive decline. With liquidity contracting due to the Federal Reserve’s hawkishness and weakening stocks, Merten predicts a potential $440 billion wipeout in the crypto market. He also suggests that Bitcoin could see a significant drop of over 43%. Despite the halving event and capped supply, Merten argues that Bitcoin performs best during periods of monetary acceleration. The uncertain and volatile economic landscape raises questions about whether people will flock to Bitcoin as a safe haven investment.
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