By Franklin Smith
The overall cryptocurrency market lost billions of dollars in the past month following an intensified bloodbath. Failure by crypto institutions has catalyzed massive liquidations in leading cryptos, leading to substantial price declines. The digital asset space experienced one of the most uncertain times in history.
Meanwhile, Bitcoin’s latest weakness triggered colossal losses in most alts. The dominant crypto stayed well beneath the $20K historical support. While writing this content, Bitcoin traded at $18,333, dropping 10.15% within the past day.
Also, BTC lost 33% over the previous week (Coinmarketcap data). Furthermore, the bellwether crypto had its market dominance losing 1.13% over the past day to 42.81%. Such a stance has deteriorated sentiment in the cryptocurrency world.
Here is the Caveat
Some prominent individuals still trust an impeding rally regardless of BTC’s state. Mike Novogratz of Galaxy Digital revealed an optimistic comment to the broad crypto community. He admits the current market situation halts Bitcoin’s upside, but the crypto will eventually recover.
Besides sidelines individuals timing the market, Novogratz thinks leading macro hedge funds will welcome buying activities. He trusts traditional macro funds that enjoyed a lucrative year will buy BTC once the Federal Reserve flinches. Adding position would mean improved sentiment within the marketplace.
Meanwhile, Nexo’s founder Anton Trenchev held his $100K forecast for BTC on Bloomberg’s interview panel. He maintained the outlook since 2020 when the coin encountered brutal bearish waves but recovered with an impressive bullish streak.
Bitcoin saw massive volatility in March 2020, losing nearly 50% intraday. However, the bellwether cryptos responded with 10X upside to explore the $50K mark.
Trenchev trusts the asset will embark on a massive upside after de-risking and deleveraging the industry. Though the crypto boasts recovery chances, everything relies on how risk-on investments perform. You cannot expect massive rallies in Bitcoin when S&P 500 records a 3% slide.
Can BTC Even Hit Its ATH Again?
Trenchev’s $100K stance for BTC seems far-fetched amidst current financial turmoil. Moreover, BTC metrics suggest extended price declines. Bitcoin will hardly keep the $20K mark amid tightening financial and regulatory pressures. Crypto investors can expect more pain as the cryptocurrency winter showcases.
For instance, the exchange outflow noted upsides towards the $86,217,539 highs since the Terra crisis. Also, the MVRVZ metric hit a two-year low at -0.226. Furthermore, the previous low emerged 72 hours ago at -0.202. That shows Bitcoin’s current undervalue, situations that usually see massive accumulation or bottoms.