Economist Mikhail Dorofeev calls the possible reason for the collapse of bitcoin to $10 000

The expert noted that during the contraction of the dollar money supply and the rise in the value of the dollar, digital assets begin to fall

31.08.2022 - 11:35

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What’s new? The value of bitcoin may fall to $10 000-$13 000, and investors’ interest in cryptocurrencies will return in the second half of 2023. These predictions in an interview with the REGNUM news agency were shared by Mikhail Dorofeev, associate professor of the Public Finance Department at the Financial University under the Government of the Russian Federation.

News on the website of IA REGNUM

What other statements have been made? According to Dorofeev, during the contraction of the dollar money supply and the rise in the value of the dollar all asset classes whose value is formed in the free market (bitcoin, gold, stocks, bonds) begin to fall. In this, the expert expects the main wave of decline in the prices of digital assets to pass at the end of 2022 because of the likely completion of the phase of tightening the monetary policy by the US Federal Reserve System (Fed).

Dorofeev also noted that cryptocurrencies have become a globally recognized asset class. In his opinion, the blocking and illegal confiscation of Russian assets in 2022 led to an increase in the fundamental value of cryptocurrencies. The expert expects a return of interest in digital assets by the second half of 2023.

Earlier, Matt Hougan, chief investment officer at Bitwise Asset Management, said that the bitcoin rate could rise to $500 000. In his view, BTC will approach the market capitalization of gold, which exceeds $11 trillion. Hougan also believes that the figure will grow faster and faster, as bitcoin is superior to gold as a store of value.

As of August 31, 11:00 UTC, BTC is trading at $20 333, down by 0,3% in 24 hours, according to cryptocurrency exchange Binance.

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