Bitcoin’s price has fallen 14% from recent highs despite the launch of 11 spot Bitcoin ETFs and millions of dollars pouring into the market. Analysts warn that a bigger storm is brewing: A potential market selloff triggered by a recession could cause Bitcoin to fall back to $15,000. Here are the Bitcoin prediction and details…
Bitcoin forecast scared
While the ETF approval initially generated excitement and Bitcoin-ETF assets under management (AUM) outpaced silver ETFs, it failed to sustain the rally. Bitcoin peaked around $49,000 but has since fallen to $41,953. Gareth Soloway, Chief Market Strategist at VerifiedInvesting.com, who correctly predicted a “sell on news” for ETF approval, attributes the decline to historical patterns. He points to 2017 and 2021, when Bitcoin’s big rises coincided with news like the launch of Bitcoin futures and the Coinbase IPO, followed by sharp declines.
A breakdown of ETF inflows and outflows offers more clues. While BlackRock and Fidelity dominated with inflows exceeding $2 billion each, Grayscale Bitcoin Trust (GBTC), once the king of the hill, saw a massive outflow of $4.8 billion after converting to an ETF. Soloway explains this shift by GBTC’s 1.5% fee, which is significantly higher than its competitors’ 0.25%. “Smart money” probably benefited from GBTC’s discount before the conversion. It is now turning to cheaper options, adding to the downward pressure.
Soloway warns about selling pressure
While Soloway expects selling pressure to stabilize in the coming weeks, he warns of a looming threat: a market sell-off in stocks. If the S&P fails, fear could suppress Bitcoin ETF inflows and trigger a deeper Bitcoin decline, potentially retesting the $15,000 level. Soloway highlights the worrying disconnect between a strong overall market narrative and the reality that only the tech sector is evolving. It draws parallels with past Bitcoin cycles, where Bitcoin peaks occurred six weeks before S&P peaks. It calls for caution and close monitoring over the next few weeks as the S&P recently reached new highs.
For investors, Soloway sees $30,000-$32,000 as the first potential buy zone if Bitcoin sells. But he also acknowledges the possibility of a steeper decline. Watch the video for the full technical analysis, specific levels to watch on Nasdaq, and information on the timing of a potential pullback, bottom price, and long-term upside potential. As a result, the abundance of Bitcoin ETFs has not protected the cryptocurrency from potential dangers. An impending market selloff could trigger a major correction and underscore the importance of staying informed and prepared for the turbulent times ahead.
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