Bitcoin Could See $3,000 In The Coming Weeks As It Falls Below $7,000
Bitcoin (BTC) could see $3,000 in the near future if the market conditions do not change. According to BitMEX CEO, Arthur Hayes, the largest cryptocurrency could retest the $3,000 region once again before starting a bull market. Financial markets would be the main reason that would push Bitcoin to the $3,000 region.
Could Bitcoin See $3K Again?
Bitcoin, the most popular cryptocurrency in the market, could see its price drop to $3,000 in the near future if financial uncertainty continues around the world. According to Mr. Hayes, stock markets could move downwards in the coming days, which could push Bitcoin and other cryptocurrencies down. He said that in his Crypto Trader Digest post on April 9.
It is worth mentioning that in the last few months, Bitcoin and stock markets have been certainly correlated. As the Coronavirus crisis expanded all over the world, financial markets massively fell, something that pushed risk-on assets such as cryptocurrencies down as well.
Mr. Hayes is not the only one claiming that Bitcoin and digital currencies could keep falling. The cryptocurrency user @CryptoCapo_ said on Twitter that he has opened a swing short between $7,000 and $8,000 with two main targets: $3,000 and $2,1000. This crypto user is known for predicting the drop to $3,800 a few weeks ago.
Countries all over the world have been pushing for very strong stimulus packages in order to reduce the negative effects of the current sudden stop. The Federal Reserve (FED) of the United States announced a $2 trillion USD stimulus package that would also have a positive effect on stocks. Indeed, markets seem to have recovered in recent weeks.
In Europe, the situation is also very difficult. Several companies have already closed their operations and many others are going to do so in the coming days. Employment offices have already experienced a surge in job requests from individuals of all ages. The consumption sector has been devastated.
About Bitcoin reaching $3,000, Hayes mentioned:
“Bitcoin will be owned unlevered. Could the price retest $3,000, absolutely. As the SPX rolls over and tests 2,000 expect all asset classes to puke again. As violent as the Q1 collapse in asset values was, we have almost 100 years of imbalances to unwind the ancien regime.”
However, Hayes also considers that in the future, Bitcoin could become a major player in the economy. Indeed, the current inflationary expectations may help it become a store of value. At the moment, Hayes end-of-2020 price target remains $20,000.
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