A widely followed crypto analyst is warning that the total market capitalization of Bitcoin (BTC) and other digital assets could collapse.
In a new strategy session, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that the total crypto market cap could see a whopping $440 billion decline from its current value.
He also says that Bitcoin could see a more than 43% drop from its current price.
“The best-case scenario here for those who’ve already positioned themselves is that we’re going to find support prior lows at around the $650 billion market cap range or for Bitcoin likely around that $15,000-$16,000 range.”
The total market cap for digital assets at time of writing is $1.092 trillion. Bitcoin is trading for $26,584 at time of writing, down 0.8% in the last seven days.
Merten bases his market cap prediction on liquidity contracting further due to the Federal Reserve’s continued hawkishness, which is also weakening the performance of stocks.
“If big tech plays like Microsoft or let alone Apple here – take a look at this [Apple] monthly candle, 7.4% to the downside here – if these stocks, these multi-trillion dollar assets, are moving lower, bond yields are going up, the dollar is becoming more scarce, what do you think this is going to do to crypto in a world of increased uncertainty and volatility? Are people really going to be rushing to Bitcoin?
I understand the argument that with the halving event, and capped supply, of course, people must go to Bitcoin. But at the end of the day, we see that Bitcoin does best not in periods of time where there’s monetary contraction, but during periods of monetary acceleration, the creation of new money and new credit in the economy.”
I
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
Credit: Source link
