The macroeconomic status of the crypto market has made unfavorable and sluggish movements lately. This has also been exhibited by Bitcoin as its market has been quiet and is stuck in the $19k-20k range for quite sometime. At the time of writing, it is trading at $19121 and has just increased a 0.4% in the past 24 hours.
Florian Grummes, the managing director of Midas Touch Consulting, reveals the possibility of Bitcoin breaking this range. According to him, it will break the support level at $18k and will then test the price level at $10k. He even shared the worst-case scenario for Bitcoin that it might test $6k price level. He added that the crypto market is currently in a liquidity crisis. However, on the brighter side, he also iterated that once BTC reaches bottom, a new all-time high can be highly expected.
Grummes correctly predicted the 2022 financial liquidity crisis due to unfavorable macroeconomics, and he also forecast that Gold will outperform crypto and the stock market in the crisis.
Bitcoin Break Out Movement Discussed
The crypto market is going through a crypto winter as the current global financial instability is tanking Bitcoin’s growth and the Fed is engaging in quantitative tightening to curb inflation levels. Grummes is leaning towards the idea that the US Dollar will be the best investment during the crisis.
Grummes also emphasized that crypto winter usually lasts approximately 24 to 27 months. He also believes that since this crypto market is still one year into the winter, a legitimate bull rally is still about a year away. He stands firm on the thought that BTC testing at $6k will still be the worst-case scenario. The next Bitcoin halving is still in May of 2024, and he strongly believes a bull market can be expected.
Can Regulation Help Bitcoin?
Experts believe that regulation will help Bitcoin and Ethereum as it will increase institutional investment in cryptocurrencies. Grummes however believes that central governments do not want to see Bitcoin succeed because it will push Central Bank Digital Currencies at the expense of Bitcoin. Therefore, regulations may also hamper the growth of Bitcoin.
