The co-founder of Absolute Strategy Research, Ian Harnett, believes that the fall of BTC may not be over yet, since, judging by past crypto rallies, bitcoin has a tendency to lose up to 80% of its value, writes Coin Quora.
Ian Harnet believes that bitcoin is likely to fall by 80%, to $13,000.
Such an event will negate the small current recovery of bitcoin in the market.
He cited 2018 as an example, when (BTC) reached $3,000 after a year earlier, in 2017 it was worth $20,000. If such an event happens again, we will witness Bitcoin reaching the $13,000 mark.
“We would still sell such cryptocurrencies. This is really a liquidity game. This is not a currency, not a commodity, and certainly not a means of saving.”
Recall that bitcoin reached a record high of $69,000 during the bull market of 2021.
Cryptocurrencies are good only when there is plenty of liquidity in the market, but when central banks begin to remove it from the market, which is what is happening now, the strongest pressure is exerted on cryptocurrencies.
In the current bear market, there is high inflation combined with an increase in the Fed’s interest rate. The main impact on digital assets began last month with the fall of the Terra ecosystem. These events were also followed by the Celsius problem, which stopped the withdrawal of customer funds from their accounts, swaps and trades for more than 8 days. Three Arrows Capital also demonstrated financial instability, as it suffered large losses on investments in LUNA.
Then the market began to recover a little after bitcoin’s decline below $18,000 last week
also, in recent weeks, there has been a significant decline in the cryptocurrency market, due to the transition of investors to more reliable traditional assets against the background of the crisis, as well as the scandal surrounding the TerraUSD stablecoin, which lost its peg to the dollar.
At the time of publication, bitcoin was trading at $ 20 318. The decrease over the last day was 3.17 percent.