Bitcoin expert fears extreme downturns, here’s why
CEO and founder of the Satoshi Act Fund, Dennis Porter, believes that Bitcoin prices will go “very, very low”. The crypto market is crashing hard as the dollar continues to show extreme strength. Bitcoin has fallen close to 6% in the last 24 hours and over 8% in the last 7 days.
Porter also reveals that many in his circle believe the current economic environment is the worst macroeconomic condition during a lifetime.
Dollar strength lowers Bitcoin
The dollar continues to rise as it hit a new 20-year high. US 10-year Treasury bills also strengthened in anticipation of an aggressive stance from the Fed. The dollar’s rally sent the S&P 500 and NASDAQ 100 lower. Bitcoin, which is highly correlated with tech stocks and the tech-based NASDAQ, also plunged.
The dollar’s rally has also shown no signs of slowing down. A report from Bloomberg highlights that the Fed’s stance could become much more aggressive. The belief is that Fed Chair Jerome Powell will follow in the footsteps of much-admired ex-Fed Chair Paul Volcker. Volcker likely tipped the US economy into a recession through his hawkish stance on inflation.
If the Fed continues its quantitative easing, the dollar could continue to see renewed highs. In his Jackson Hole speech, Powell reaffirmed his position to increase the dollar’s strength to fight inflation. The Intercontinental Exchange’s dollar gauge highlights that the dollar is still a third lower than in 1985 under Volcker’s regime.
How low can BTC go
Experts believe that Bitcoin dominance is currently at support levels. If BTC continues to fall, it could go to extreme lows. Richard Heart, a major crypto influencer, believes that Bitcoin will fall to $11,000 before any upward movement.
All eyes are now on the release of CPI data from 13 September. Favorable CPI data could release downward pressure from the Fed’s hawkish activity on Bitcoin and could lead to a BTC rally.
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The content presented may include the author’s personal opinion and is subject to market conditions. Do market research before investing in cryptocurrencies. The author or publication has no responsibility for your personal financial loss.
