Drop to $3000 and correction until 2024. The most negative predictions for bitcoin

The situation in the digital currency market is still unstable, and events related to the collapse of the Terra ecosystem continue to unfold. Against this background, well-known representatives of the crypto-industry and financial regulators share their assumptions about the future price movement of the first cryptocurrency. The editors of GetBlock Magazine collected new negative predictions about the prospects of bitcoin. Previously, we have already published the TOP 5 worst-case scenarios for BTC.

Decline to $14 000

Kavita Gupta, the founder of Delta Blockchain Fund, believes that the downward trend in the crypto market has just begun, and the decline in major digital currencies will continue over the next year and a half. The price of bitcoin in this case, in her opinion, can fall to $ 14 000. According to Gupta, the correction in the market is similar to previous price movements after BTC reached historic highs.

She also stressed that the correction would provide a chance for wider acceptance of bitcoin, which would serve as an incentive to reach new price heights. The more companies incorporate the asset into their balance sheet, the greater the chance of new highs.

The collapse of rates for most digital assets

US Securities and Exchange Commission (SEC) chairman Gary Gensler suggested that the “turmoil” in the digital assets market will not stop following the crash of the Terra ecosystem as a result of the collapse of its LUNA token and UST stablecoin. He believes that many more coins will “fail,” hurting even more investors.

According to Gensler, crypto traders should be prepared for the value of other coins to drop to near zero. He added that investors could lose their money and their confidence in the digital assets industry would be undermined:

“I think a lot of these tokens will fail. I fear that in crypto…there’s going to be a lot of people hurt.”

In addition, Gensler confirmed the SEC's plans to strengthen oversight of crypto platforms. The regulator insists that all trading platforms must be registered with financial regulators. According to Gensler, this way investors will get maximum protection when working with cryptocurrencies.

Drop in bitcoin price to $9 000

On May 19, the investor and author of the bestseller “Rich Dad Poor Dad” Robert Kiyosaki admitted that the price of bitcoin could drop to $20 000, $14 000, or even $9 000. However, he remains positive about the future of the first cryptocurrency in the long term. Earlier, Kiyosaki also noted that the market “crashes are best times to get rich.”

The collapse of the bitcoin rate to $ 8 000

Guggenheim Partners Chief Investment Officer Scott Minerd said that the bitcoin rate could fall as low as $8 000. He attributed this to the US Federal Reserve System’s (Fed) hiking of interest rates and tightening of monetary policy.

Minerd called most of the cryptocurrencies “junk,” noting that only bitcoin and Ethereum would survive in the long term. However, according to Minerd, the dominant player in the crypto industry is still undetermined. In his view, cryptocurrencies do not have the right prototype. The expert stated that the currency needs to store value, be a medium of exchange, and a unit of account, however, there is nothing like that in the crypto industry, and digital assets have not come to a common basis.

The benefits of a crypto bear market

Paul Veradittakit, a partner at Pantera Capital, a cryptocurrency hedge fund, believes cryptocurrencies are at the beginning of a bear market. He noted that at this time, entrepreneurs should raise capital and investors should invest in shares at a favorable value.

According to the expert, now it may seem like the stock market is linked to the cryptocurrency market. However, he recalled that during the last bear market, it took 71 days to break their correlation, after which digital asset rates started rising. Veradittakit also wrote that usually during a bull market, most transactions are linked to digital assets, while during a bear market there is a demand for equities. He attributed this to a decline in investor interest in risky assets.

Bitcoin's fall to $3 000

Economist and founder of HS Dent Publishing Harry Dent allowed the possibility of the bitcoin price to fall below $3 000. At the same time, he believes the value of the first cryptocurrency could reach $500 000 at the next rise in the crypto market. Dent also expects the widespread adoption of BTC as a digital monetary standard in the long term.

According to Dent, bitcoin could gain public acceptance and become the new digital money standard. However, the economist believes that the asset has not yet reached a level to become socially accepted. Regarding the future of bitcoin, he added:

“It’s gonna crash and I think bitcoin could go down to $3 000 or $7 000 and then go to $500 000 to $1 million in the next global boom [by 2037]. So that will be the buy of an of a lifetime, but I wouldn’t touch it with a 10-foot pole even down 50% here.”

“Macroeconomic Crisis”

Ki Young Ju, the CEO of the analytics firm CryptoQuant, said that in a worst-case scenario, the bitcoin rate will fall to $14 000. The analyst came to these conclusions after studying historical metrics. According to Ki Young Ju, the fall in the price of BTC may occur due to the macroeconomic crisis. In this, he added that a bearish trend will bring guaranteed profits to investors.