Stifel says Three Macro Factors Could Drop Bitcoin Price To $10,000
21 Februar 2022 - 11:40PM
NEWSBTC
Stifel’s Chief Equity Strategist and Managing Director Barry
Bannister believe that by 2023 bitcoin could lead to a plunge
in price to $10,000. When discussing bitcoin’s price with Business
Insider, Bannister said that a tightening of Federal Reserve policy
and reducing the balance sheet would negatively impact bitcoin’s
value. Related Reading | Bitcoin Sets Stage For Reversal As Unmoved
Supply Nears All-Time High The price is closely tied with the
global money supply regarding bitcoin. Therefore, the strategist
identified this first essential macro factor and cited that since
the S&P 500 moved into the US dollar as its power base, any
given Supply/Demand situation will affect BTC value. If the money
supply measure known as M2 slows down, it is likely that US
financial status will tighten. Stifel Managing Director, Bannister
believes this would cause a crash in bitcoin prices and other
speculative assets like stocks or bonds. These are also denominated
through loans given by banks with an interest rate attached.
Bannister pointed the Fed’s tightening could stop bitcoin’s growth
as a second macro factor. In addition, the 10-year US Treasury
yield has been increasing, and this will likely result in a surge.
Overflow halts or slows down bitcoin transactions. Bannister said;
In 2022, we see bitcoin in a broad trading range bounded by
year-to-date intra-day levels with greater downside risk in 2023
<…> If the rising 10Y TIPS yield pulls gold lower, that also
pressures Bitcoin. If Bitcoin divided by gold falls to the low end
of its range (Fed tightens). Bitcoin could drop to $10,000 by 2023.
Lastly, the analyst from Stifel said that the Fed’s decision to
tighten would create a lower equity risk premium. The action is
good for bitcoin’s growth. Analysts Vs. Stifel Predictions With the
Federal Reserve announcing it will ease its tightening, bitcoin
could be set for a correction. There is a deep dive in the
cryptocurrency market, and bitcoin’s value has dropped by almost
9.4% in a week. If Bannister’s projection becomes true, this will
be a more than a 75% drop from its current state. Related Reading |
Bitcoin Plunges Below $40 As Russia Has Reportedly Given Its Forces
Order To Attack Ukraine Several analysts report that bitcoin will
likely crash further but rebound to a new all-time high. As written
by InTheMoneyStocks’ chief market strategist, Gareth Soloway,
bitcoin’s price is expected to move back up above $17,000 in the
coming weeks or months. However, Soloway believes that bitcoin will
not last in the position for much longer. He said this based on how
de-leveraging has affected digital assets as a whole and not just
cryptocurrency specifically. Yet, it won’t be the first time we
will see a low of $10,000. For instance, in December 2017, BTC
reached its high at around $20,000 and then went into winter. This
resulted in an 80% plunge before finally recovering some ground.
Investors will likely opt for cryptocurrencies when interest rates
rise, boosting digital assets. According to our report by Pantera
Capital CEO Dan Morehead, increased stability in USD may lead
people towards bitcoin over other coins because it’s more hedged
against inflation risk while still being transnational. Featured
image from Pixabay, chart from TradingView.com
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