14h30 ▪
3
min of reading ▪ by
The forecasts for bitcoin are becoming increasingly bleak. According to recent analyses, the price of the crypto could see a significant drop. This alarming perspective has already started to sow doubt among investors. With increased volatility and troubling market signals, the immediate future of bitcoin remains uncertain and raises many questions.
The stagnation in Bitcoin network growth worries Jurrien Timmer
According to Jurrien Timmer of Fidelity Investments, bitcoin’s valuation heavily relies on the dynamics of its network. The analyst describes Bitcoin as “exponential gold.” This metaphor underscores the digital scarcity of bitcoin and its potential as a store of value. He explained that the increase in bitcoin’s price generally follows the power curve of its network’s growth, reflecting a development pattern observed in various technological innovations.
However, Timmer has recently observed a worrying slowdown in this growth. While bitcoin’s price continues to rise, he notes a notable divergence between the crypto’s value and its network expansion. For him, this situation is concerning and could hinder bitcoin’s ability to reach new heights. He asserts that for the queen of cryptos to return to a solid bullish dynamic, significant acceleration in its network growth is indispensable.
Bitcoin could drop to $48,000 according to Peter Brandt
While Jurrien Timmer merely expresses concerns, Peter Brandt, an experienced analyst, presents a much more pessimistic outlook for bitcoin. Contrary to those predicting a spectacular rise, Brandt asserts that the current bullish cycle for bitcoin might already be over. Based on previous bullish cycles, he observes a trend of diminishing returns. For instance, the 2011/2013 cycle saw an 82% reduction in gains compared to the 2010/2011 cycle, and this trend continued with similar decreases of 79% and 82% in subsequent cycles.
For Brandt, if this trend persists, the peak of $73,777 recently reached could very well represent the pinnacle of this cycle. Additionally, Brandt has issued clear warnings of a potential price drop in bitcoin. Currently, the flagship crypto is struggling to maintain the $70,000 threshold. The expert estimates that if bitcoin falls below $65,000, it could quickly drop to $60,000, and if this level does not hold, a descent to $48,000 is conceivable.
This perspective starkly contrasts with the optimistic forecasts of some experts like Mike Novogratz and Robert Kiyosaki, who envision prices reaching $100,000 or more. Investors are therefore called upon to exercise caution in the face of these bearish perspectives.
Maximize your Cointribune experience with our ‘Read to Earn’ program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.
Click here to join ‘Read to Earn’ and turn your passion for crypto into rewards!
Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
