Bitcoin May Sink to $9k While Gold Shines in 2023; Here’s what the expert says
As most assets in the cryptocurrency market continue to struggle with the aftermath of the FTX collapse, Bitcoin (BTC) is holding steady below the critical $16,600 resistance, and one trading expert believes it could fall even further.
Actual InTheMoneyStocks.com market strategist Gareth Soloway has said that Bitcoin could fall to $9,000 in 2023, but that he is not too worried about the token’s long-term performance during an interview published on November 26 with Small Caps’ Kerry Stevenson.
Soloway observed the S&P500’s performance after the Lehman Brothers collapse, noting that the stock market had fallen roughly 40-45% over the following five or six months, and used the same formula to calculate that Bitcoin could drop to $9,000 in the months after FTX crash.
Bitcoin long-term believer
That said, he admitted that he wanted to “be in Bitcoin for the longer term,” which is why he’s going to “hold” more, or as he explained, “So when we’re down here, I basically have already collected what I would consider to be one-sixth of what I hope to keep in the longer term.”
His reasoning for this is that:
“If I’m wrong, I don’t want to sit here without Bitcoin, so I’m willing to buy a little bit here (…) and the idea is that after the dollar cost averaging comes to my full position, I’m able to reduce the risk of missing the trade, while reducing the risk if it goes to $9,000.”
This way, the market strategist believes, is “a way of adjusting and managing risk,” and I think it’s a very smart investment decision for most people to make, to just get into positions right now.”
Meanwhile, Bitcoin is changing hands at $16,225, down 1.89% on the day but up 0.32% over the past seven days. Since the turn of the year, the price of the flagship decentralized finance (DeFi) token has lost 65.38%.
“Safety of Gold” versus Crypto Uncertainty
On the other hand, despite his belief that Bitcoin could fall further, Soloway is very bullish on gold, which has “already had an amazing move” around $1,728 and broke through. In his view:
“I love the fact that we are trading above this $1,728 level. As long as that continues, I’m bullish in the short and long term on gold. (…) I have loved gold all year. I said it would be the best asset between the S&P and Bitcoin, and it clearly was for 2022.”
He believes the same thing will happen in 2023 “although it’s a little harder with Bitcoin now because when Bitcoin hits a low, it’s a little harder to think about. If it bottoms out in June or May 2023, where is it by December? So it’s a little more difficult, but I’d still go with the safety of gold with the uncertainty of crypto right now.”
In particular, gold owes its outstanding short-term performance to macro factors such as the possibility of the Federal Reserve tapering its rate hikes as the economy weakens and the US dollar begins to suffer as a result.
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Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
