Pro trader says Bitcoin to dive to $13,000 ahead of big rally as ‘financial crisis 2.0’ unfolds
Bitcoin (BTC), despite rising a little more than 70% so far this year, currently trading at roughly $28,400, is forecast to fall below $13,000 before another rally.
The latest forecast comes from the Chief Market Strategist of InTheMoneyStocks.comGareth Soloway, who believes that despite the flagship digital asset’s current push towards $30,000, it will plummet to levels not seen since November 2020. The prediction also comes amid recent bank failures in the US, including Silvergate Bank, Silicon Valley Bank, and Signature Bank, and UBS’s takeover of Credit Suisse, previously the second largest bank in Switzerland.
Soloway stated in an interview with News from Kitco on March 29 that the ongoing banking crisis has resulted in investors pulling their money out of banks and investing in Bitcoin, which has contributed to the recent rally. However, he noted that as the financial system becomes more stable, Bitcoin’s value will decline, potentially falling to as low as $9,000 in 2023.
“This is a fundamental financial crisis 2.0. We don’t know how bad this is going to get … this is potentially like a Lehman moment.”
He added:
“By the end of the year, I think it will at least reach $12,000-$13,000. The bottom line in this is that number one we still have to wait for regulation, especially with the uncertainty. <...> At the end of the day, we have to remember that you’re at a point where regulation is still keeping big money out and people are still subject to absolute fear.”
Bitcoin previously fell in line with the stock market
Soloway correctly predicted the Bitcoin bottom in 2021, and his two decades of professional trading experience have made him a respected voice in the industry. He further stated that historically Bitcoin’s value has fallen in line with the stock market during times of economic downturn. Therefore, if the S&P sustains significant losses, Bitcoin will likely be caught up in the selloff.
He added:
“If you look historically at Bitcoin, it’s gone down when the stock market has gone down. If the S&P dumps as much as I think Bitcoin will get caught up in that selloff.”
Despite his short-term bearish stance, Soloway remains a long-term Bitcoin bull. He believes that Bitcoin’s value will initially fall due to the ongoing banking crisis and potential stock market sell-off, but it will recover and continue its long-term growth trajectory.
Watch the full interview below:
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
