Crypto analyst Nicholas Merten warns that if the economy goes into recession Bitcoin He warns that (BTC) may collapse.
Merten tells his 512,000 YouTube subscribers that Bitcoin could fall more than 46% from its current value if the Federal Reserve’s hawkishness leads to a prolonged economic downturn.
According to Merten, if commodities such as oil, natural gas and uranium begin to “move dormant,” this will signal that a short-term recession is approaching.
“A short-term recession will cause some pain. Stocks will likely return to their lows, towards the 33% correction we saw in October 2022. Bitcoin could possibly move back towards a similar lower range it previously saw around $15,000 to $17,000. And that would actually be a pretty good scenario. “We may be hitting a double bottom in most assets.”
NEWS CONTINUES BELOW
He predicts that BTC will not see a sustained bull market until the Federal Reserve begins increasing liquidity in the markets to support the economy.
“There is no significant Bitcoin trend. For example, when we move sideways from March 2023 to October 2023, this definitely does not look like a bull market to me. We broke the ascending channel. Here we fail to clear the clear resistance between $28,000 and $32,000. I think it’s time for us to maintain a conservative approach here in terms of where we predict crypto will go.
NEWS CONTINUES BELOWI think we need to be patient here and wait for signs of real optimism and more specifically signs that liquidity will be on our side because crypto is incredibly hungry for liquidity. This is the lifeblood of risky assets like Bitcoin…
“At the end of the day, Bitcoin does best when there is an increase in the money supply and essentially an increase in the risk-taking mentality, and none of that is happening right now.”
Koinfinans.com As we reported, Bitcoin is trading at $27,912 at press time, up 1.8% in the last 24 hours.