There is a divergence among analysts on the long-term direction of Bitcoin (^BTCUSD). After the recent implosion of FTX.com, there is concern that more contagion might lie ahead for cryptocurrencies and firms exposed to the FTX.com bankruptcy. The uncertainty has analysts divided, with BCA Research predicting Bitcoin will fall to $5,000, while Ark Investment Management’s Cathie Wood sees Bitcoin soaring to $1 million by 2030.
The price of Bitcoin has stabilized for the time being above Monday’s 2-year low of $15,516 as the crypto market awaits news of any further casualties from the blow-up of FTX.com. Bitcoin and a gauge of the top 100 crypto tokens have lost more than 70% of their value after Bitcoin peaked just below $69,000 in November 2021. The CEO of the Independent Reserve crypto exchange said, “people don’t know which platforms they can trust, and the implosion of FTX.com will take a while to bubble through the market.”
On the skeptics’ side, BCA Research said, “fiat currencies may get the last laugh,” as soaring interest rates have pushed up the opportunity cost of holding crypto. In contrast, Ark Investment Management’s Cathie Wood is sticking by her bullish forecast of $1 million for Bitcoin by 2030, citing the underlying technology of digital assets. However, she also said there’s likely to be more fallout from FTX.com in the immediate future.
Some crypto speculators cite chart patterns to determine the next move in Bitcoin. 22V Research’s technical strategist Roque said Bitcoin’s slide from a record of almost $69,000 in November of last year is close to 80%. Bubbles in markets “fully pop when the asset in question goes down 80%-to-90%. Some chart watchers are looking at the price of Bitcoin falling to $10,000. That was the level that Bitcoin broke out from in 2020 on its bull run to a record high.
Bitcoin, Ether (^ETHUSD), and other major crypto tokens have steadied this week after their plunge following the collapse of FTX.com, although the fear of a broader fallout remains palpable. The CEO of the Independent Reserve crypto exchange said there remains significant “counterparty risk in the crypto industry,” and he anticipates “low prices and a lot of uncertainty in the next three to six months at least.”
More Crypto News from Barchart
- Unusual Options Activity Highlights the Damage Done to the Blockchain (AMD, NVDA)
- Crypto Winter Turns Arctic
- Cryptocurrencies Remain Under Pressure as FTX.com Goes Bankrupt
- Here’s Why Investors Should Wait Until Bitcoin Drops to $10,000 Before Buying
