American businessman and founder of DoubleLine Capital LP – Jeffrey Gundlach – said that the current state of the cryptocurrency market is “clearly not positive.” Considering this negative trend, he believes that the price of bitcoin could drop to $10,000.
BTC at $10K will be no surprise
In a recent interview for CNBC, the American billionaire known as the “bond-king” – Jeffrey Gundlach – predicted a considerable downturn for bitcoin’s future valuations. According to him, the primary cryptocurrency’s recent decline is occurring at a bullish pace, and the trend could lead to further declines towards $10,000:
“Looks like it is going to expire, so I am not bullish on bitcoin at $20,000 or $21,000, I absolutely wouldn’t be surprised if it goes to $10,000.”
Similar to many traditional financial markets, the digital asset market has crashed over the past week. Bitcoin, for one, is currently hovering around $22,000, a far cry from its level at the beginning of 2022 and its all-time high (around $70,000) registered in November last year.
In January 2021, Gundlach warned that BTC could represent a large bubble due to its significant price swings. At the time, the asset was trading at $42,000, but fell around $12K in 24 hours:
“I don’t like bitcoin here. I don’t like things that get loose like this. To me, bitcoin is in bubble territory in terms of the way it’s acting now.”
In the following months, the cryptocurrency overcame its issues and headed north once again, reaching around $50K. Interestingly, this changed the heart of Gundlach, who classified BTC as an “incentive asset” and a better investment instrument than gold.
Brandt and Hayes also targeted a bearish
Earlier this week, Peter Brandt, a popular cryptocurrency commentator and veteran derivatives trader, shared a similar prediction for the future USD valuation of Bitcoin. Based on the double-top pattern, he speculates that the asset could drop towards $13,000.
The former CEO of BitMEX – Arthur Hayes – said that bitcoin is forming a $20,000 base. In his view, it is important to maintain that level as a fall below could result in significant selling pressure and a further drop in price:
“As far as the chart goes, you better take out your Lord Satoshi prayer book and hope the Lord shows mercy to the spirit of the crypto markets. Bc if these levels are broken, you can shut down your computer Because your charts will be useless for some time.
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