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Bitcoin price could drop another 50%, according to this investment titan

Cryptocurrency Dec 14, 2022 05:57AM ET
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© Reuters. Bitcoin (BTC) price could drop another 50%, according to this investment titan
 
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By Senad Karaahmetovic

While cryptocurrency investors continue to focus on the world’s largest exchange Binance and reported higher-than-usual outflows, one global investment giant believes the crypto winter is yet to go through its worst phase.

Matthew Sigel, Head of Digital Assets Research at VanEck, forecasts Bitcoin price falling to $10,000-$12,000 in the first quarter of the next year. The analyst sees the drop being fueled by a “wave of miner bankruptcies,” which could result in Bitcoin hitting “the low point of the crypto winter.”

“With Bitcoin mining largely unprofitable given recent higher electricity prices and lower Bitcoin prices, we predict that many miners will restructure or merge. Ripple losing its SEC lawsuit (possible in Q1) may coincide with this final downdraft, which would take out nearly the entirety of the post-2020 halving bull market,” Sigel wrote in a blog post.

This drop will then be seen as a buying opportunity by many crypto investors, helping the world’s largest digital asset to recover to $30,000, Sigel added. The surge in Bitcoin price would come as a result of lower inflation, easing energy concerns, a better geopolitical situation, as well as due to a turnaround in M2 supply.

Sigel’s projection is based on the scenario of “a lack of bad crypto-specific news,” like the collapse of FTX. Hence, Sigel didn’t account for a possible collapse of the leading global exchange Binance, which is experiencing extremely high outflows in the last 48 hours.

Strong outflows forced Binance to suspend withdrawals of USD Coin.

Bitcoin is trading modestly higher today as bulls try to get back above $18,000.

 

Bitcoin price could drop another 50%, according to this investment titan
 

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