Critical Bitcoin and LUNA Alert from Famous Strategist: It’s All Legend!
As uncertainty in the cryptocurrency market continues, InTheMoneyStock.com chief market strategist Gareth Soloway predicts that Bitcoin (BTC) could drop as low as $12,000.
Bitcoin and the Inflation Myth
In an interview with Stansberry Research, one of the leading research organizations, Soloway emphasized that the correction in the market will continue as Bitcoin has never experienced the current environment brought on by the Fed’s quantitative easing monetary policy and interest rate hikes. The manager also stated that the claims that Bitcoin protects against inflation do not reflect the truth. While the leading cryptocurrency Bitcoin is trying to reach the $30,000 level again, the strategist stated that BTC will continue to lose momentum in the short term and added:
Bitcoin could drop as low as $12,000. If you look at previous cycles like 2017, when Bitcoin peaked, it corrected by 80-85% by the end of the bear market. $12,000 wouldn’t come as a surprise if history repeats itself and we relive this cycle. Claims that Bitcoin protects against inflation are a false myth. We have never faced such high inflation before.
The manager also underlined that despite the high volatility and harsh corrections experienced in 2022, Bitcoin can recover in the long run and return to its old bright days. Soloway added that the conference, which will be attended by 44 countries in El Salvador, is of great importance for the global adoption of Bitcoin .
Nightmare of Terra, A Positive Long-Term Development
Commenting on the Terra (LUNA) collapse, Soloway claimed that this chaos, which brought the crypto money industry back to the agenda, will have positive results in the long run. The analyst stated that especially the leading countries will take concrete steps towards regulation. Stating that regulation is needed for the growth of the industry and that the collapse of LUNA could be a turning point to protect investors, the manager emphasized that it would be beneficial to look at the event from the positive side and added:
I hope the entire industry learns from this crisis. I think that states will speed up their regulatory efforts to prevent nightmares of this kind from happening again. The Terra case is a positive development in the long run. Maybe such a crisis had to happen for the industry to wake up to some harsh realities.
Referring to the fact that some investors bought LUNA amid the crash , Soloway warned that bailout plans would not work. Overall, the market strategist noted that the crash was unfortunate for the cryptocurrency industry, considering that confidence is at the center of the market’s growth. Soloway also noted that the collapse of LUNA helped Bitcoin and Ethereum (ETH) stand out as the only reliable cryptocurrencies. Finally, the expert noted that for Bitcoin and ETH to maintain their dominance, at least 95% of other cryptocurrencies in the market must be deleted and the dot.com era repeated.