Veteran commodity trader Peter Brandt remains committed to his prediction that the Bitcoin price could potentially drop to zero. The graphics specialist still believes that such a disaster scenario has a 50% chance of occurring.
In contrast, Brandt said the largest cryptocurrency has an equal chance of surging up to $250,000 and that the cryptocurrency has an “asymmetric reward-risk trade”. thinks.
“Back to 2018, I said without hesitation that Bitcoin has a 50% chance to go to 100,000/250,000 ($) and a 50% chance to go to zero. I still believe this, but it means that BTC represents highly asymmetrical risk-reward trading.”
The risk/reward ratio, the ratio expresses how much risk an investor will take in return for the potential profit he or she will make from each unit of money invested. Asymmetric risk/reward is the imbalance between risk and reward.
Koinfinans.com As we reported, the trader predicted that zero could be Bitcoin’s ultimate bottom point after the leading cryptocurrency suffered a massive collapse from the pandemic in March 2020. However, Bitcoin rallied just months after that, peaking at $69,000.
Can Bitcoin drop to zero?
While the biggest cryptocurrency has been around for a long time, there are also dissenters who think it will eventually be forgotten.
Berkshire Hathaway Vice President Charlie Munger, for example, recently claimed that it is “very likely” for Bitcoin to go to zero, adding that the cryptocurrency is “bad”.
While such a scenario is highly unlikely, Bitcoin technically could still drop to zero. In 2018, Yale University economists revealed that the probability of the largest cryptocurrency falling to zero in a single day is 0.4%.
Realistic fall target
Talking about more realistic bearish targets, Brandt recently suggested that the $8,000 level could be the bottom of the ongoing price correction. The cryptocurrency is trading at $19,197 at press time, down 72.20% from its record level.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.