Professional trader warns of ‘brutal’ market decline and crypto fallout

Professional trader warns of ‘brutal’ market decline and crypto fallout

“Terribly.”

A scary word to describe the future of a market.

Not a word any investor wants to hear in the context of assets they happen to have.

Yet that is the exact word used by InTheMoneyStocks.com Chief Market Strategist, Gareth Soloway, to explain his predictions for what awaits the stock market (and beyond) in the near future, when he sat down with David Lin in an interview for his The David Lin Report show streamed April 18.

What’s more, Soloway believes that this “horrific” rash in stocks could spill over into the cryptocurrency market. As he said:

“The Federal Reserve recently came out and said, ‘hey guys, we expect a small recession,’ and if you’re like me and you hear the Fed say ‘small’ and (…) ‘transient’ – and we saw what happened – you have to be nervous about risk assets going forward. (…) I think the stock market is getting ready to have a second half that’s going to be brutal, and my guess is that it’s pulling crypto down as well.”

According to Soloway, this is “one of those scenarios where they always try to sugarcoat because they don’t want to spook the markets and cause a collapse, but smart investors have to start preparing for a worse recession than what they’re saying. It’s just risk management. (…) In other words, it’s probably going to be a mid-level recession.”

$30,500 for Bitcoin to Accumulate

As for a bullish scenario for the flagship cryptocurrency, Bitcoin (BTC), Soloway, who is short-term bearish but long-term bullish, sees $30,500 as a “huge psychological level” and one “where it would make me think that the low is in”, although he is still largely skeptical:

“If we manage to hold above $30,500 for several days, I’m really looking at five to seven days, so to me you’re probably short on Bitcoin. For now, I’m not convinced. I still think this is a bear market rally. I still think there are more shoes to drop in the market for risk-takers.”

Meanwhile, the representative decentralized finance (DeFi) asset was changing hands at press time at the price of $29,250, down 2.16% over the last 24 hours and 3.34% over the week, although it is still clinging to 3.77% gain on its monthly chart, according to data obtained by Finbold on April 19.

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Watch the full video below:

Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.

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