Bitcoin price volatile but new all-time high a possibility within next 2 years
Fund manager Meltem Demirors believes Bitcoin will take two years until it returns to a new all-time high price by mid-2024.
- Bitcoin appears to have found support at around $20,000, but experts believe it is likely to dip below this threshold from time to time.
- Analysts believe the ongoing crypto winter may see more than 90% of all projects in the market wiped out.
After having scaled as high as $22K earlier this week, bearish action has again gripped Bitcoin (BTC). It is currently down -3.3% over the week to trade at $19,528.
According to Meltem Demirors, chief strategy officer for digital asset management firm CoinShares, the current macroeconomic environment is causing Bitcoin to slide and will continue to do so for the foreseeable future. That said, she sees the digital currency hitting new all-time highs (ATH) within the next 24 months.
Demirors noted that Bitcoin has always functioned as a “cyclical asset,” with its drawdowns from peak to trough ranging between 80% and 90% over the past decade. Currently, BTC is down 71% from its ATH, with there still being some more room for “downward price action.” She highlighted:
“We obviously had a lot of liquidations, a lot of insolvencies that had a massive impact on the market. We’re talking about $10, $20, $30 billion of capital that has basically evaporated overnight. [However], in the next 24 months, we will see new all-time highs in Bitcoin.”
As far as Bitcoin’s near-term future goes, she sees the currency having found strong support at around $20K, claiming that the asset will not fall below $14K under any circumstance.
What lies ahead?
As per Louis Schoeman, an executive for Forex Suggest, the ongoing bear market stands to wipe off more than 90% of all crypto projects in existence today. He believes this winter will stimulate a “cleansing process.” He added: “It serves as a massive opportunity for many no-coiners to enter the crypto market for the first time. Fortune favors the brave in crypto right now.”
Recently, Dallas Mavericks owner Mark Cuban claimed that the bear market will only subside once more applications with business-focused utility make their way into the market.
Disclosure: The author owns a range of cryptocurrencies at the time of writing