Trading expert Gareth Soloway said that if the “worst-case scenario” happens, the Bitcoin price will see historical bottoms.
Gareth Soloway shares $3,500 “worst case scenario” for Bitcoin
Gareth Soloway, chief market strategist at InTheMoneyStocks.com, says Bitcoin (BTC) will likely see a new correction as it struggles with the macroeconomic environment. In a new interview on October 12, he suggested that the worst-case scenario for Bitcoin is a correction towards $3,500. If this level is reached, as much of the cryptocurrency market will likely resemble what Amazon (AMZN) experienced during the Dot-com bubble. Meanwhile, Soloway pointed out that Bitcoin is likely to bottom out within a year before rallying again. However, before that, he says that Bitcoin will likely rise with gold:
As Bitcoin matures and regulation gives people more confidence, there will be a pivot… I believe there will be a small bounce in the near future and then fluctuate up to $12,000 to $13,000. After that I am worried. This point, where prices will drop below $10,000 to $8,000, or in the worst-case scenario, below $3,500, will be similar to Amazon.com’s dot-com collapse.
Bitcoin’s relationship with traditional markets
According to Gareth Soloway, as Bitcoin develops and separates from stocks, it will likely behave like gold. The analyst also issued a warning that it will take time for the divergence in stocks to emerge. Soloway continues by saying that the willingness of institutions to invest in cryptocurrencies will be essential for Bitcoin’s future growth regardless of the prevailing macroeconomic factors. However, he thinks the regulatory framework greatly influences institutional input, as it makes his investors feel safe.
The effect of the dollar on Bitcoin
Citing the dollar’s impact, Soloway predicted that Bitcoin would likely correct towards $12,000. According to the expert, the strong performance of the dollar threatens to destroy all risky markets, including Bitcoin. Elsewhere, Bitcoin recorded small gains after falling after US inflation data. cryptocoin.comAs you follow, BTC is currently trading around $19,400.
Sales hit $8 billion after US inflation hit 8.2%
Following the US inflation data, Bitcoin’s market cap wiped $8.48 billion in two hours. In particular, the latest figures lead to higher rate hike expectations among analysts. The Fed’s tightening policies have reduced demand for risk-sensitive markets like Bitcoin. The current environment is also bleak for stocks. However, the gains on October 14 make cryptocurrencies strong against the dollar again. The latest data show that the September CPI increased by 8.2% year-on-year, compared to the expected 8.1%. At the same time, the core CPI also stood out as the highest level since 1982, reaching 6.6% annually. Although Bitcoin initially lost $19,000, it touched $19,889.15 today, showing that the bulls are still behind.
