CNBC analyst Brian Kelly, Bitcoin (BTC) He believes that although its price is trading down more than 70% from its all-time high, it still has more downside potential.
Sharing his views on CNBC’s Fast Money, Kelly thinks that as the macro environment worsens, the leading crypto could lose close to 50% from current levels.
“The good news is that I think we’re getting very close to an intergenerational base. The bad news is that this may not occur until Bitcoin reaches $10,000.”
Bitcoin was trading at $19,200 at the time of writing.
CNBC analystsuggested that Bitcoin will bottom out when it experiences a Lehman moment, which is potentially a scenario months later. A Lehman moment is defined as a moment when there is fear that turmoil in an asset or industry may become more pervasive.
“We’re probably months ahead of a Lehman moment, so this kind of final drop looks set to happen. Someone big can go bankrupt in ways you never expected. My guess is we’re months away from that, but the probability is high.”
Koinfinans.com As we reported, according to Kelly, the Bitcoin crash will be triggered by policy mistakes by central banks and accentuated by the loss of leverage in the market.
“The catalyst for these events will be the increase in inflation expectations and the central banks making a policy mistake… If these three combinations are interpreted together, the equivalent in Bitcoin will be between $ 10,000-15,000, near these levels, and inflation expectations are increasing in the next quarter. We all know that the central bank has already made a policy mistake and will continue to do more. The scenario, which is the combination of all these events, could mean a bottom for Bitcoin.”
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.