Bitcoin price could collapse due to pegging according to analyst

Renowned investment analyst Cezary Graf has shared an ominous outlook for the Bitcoin price. In his opinion, BTC could collapse to catastrophic levels.

On May 11, Graf said Bitcoin prices could collapse to $3. This wild prediction was based on Tether and Binance’s influence over the Bitcoin markets.

Graf has often shared his thoughts on several topics in finance and economics with his 42,500 Twitter followers. On his website, he promotes a series of investment webinars and offers consulting services.

According to the Polish financial advisor, a collapse of Tether or Binance or both could cause Bitcoin prices to crash to levels not seen in a decade:

He said (translated):

“Without Tether and Binance, today’s 27,000 USDT per BTC will become $2.7 per BTC. Then crypto can become economically attractive again. Better to lose an opportunity than money. Better to wait.”

On May 13, he became clarified that the price estimate was a drop to $2,700, not $3.

Could Bitcoin Price Collapse?

Tether has a huge influence over crypto markets, with almost 83 billion USDT in circulation. This currently represents around 7% of the entire crypto market cap.

However, the firm recently released an assurance report stating that the stablecoin is fully supported. Tether reported an increase in surplus reserves that reached a record high of $2.44 billion. It noted that most of the reserves are invested in US Treasuries.

Binance is the world’s largest crypto exchange, so its influence is also significant. Binance has also assured its customers that they have full reserves as backing tokens listed on the exchange. However, the company is currently in the crosshairs of US regulators who are conducting a sweeping crackdown on all crypto exchanges.

Furthermore, Binance has recently seen a decline in trading volume, but remains dominant.

These doomsday predictions should generally be taken with a grain of salt. Anti-crypto commentators like Cezary Graf, Nouriel Roubini and Peter Schiff often come out with wild remarks when crypto markets are bearish. They are generally quite quiet when the bull markets are in full swing.

BTC Price Outlook

Bitcoin prices were trading up 1.3% on the day at the time of writing. As a result, the asset changed hands for $27,195 during the Asian trading session on Monday morning.

The market correction is likely to deepen, with analysts predicting a drop to around $24,000. A catastrophic crash to $2,700 is highly unlikely at this stage.