Bitcoin cryptocurrency predicted to fall to $ 15,000

Nicholas Merten, CEO of DataDash, has suggested that bitcoin BTC $65,438.70 Bitcoin -0.36% Market capitalization $1.29 trillion VOL. 24 hours $0.6 billion could return to $ 15,000-$ 17,000 if the US economy suffers a recession.

Merten said on the DataDash YouTube channel that the market leader could fall sharply due to the actions of the US Federal Reserve, which could lead to a prolonged economic downturn in the country. The expert suggested that if commodities such as oil, natural gas, and uranium begin to stabilize or decline in price, it will be a sign of a future short-term recession. In this case, stocks could fall by about 33%, similar to the correction that occurred in October 2022.

For its part, according to the analyst, bitcoin will react to this situation by falling to $ 15,000-$ 17,000. «A short-term recession will be a bit unpleasant. However, it would be a very favorable scenario. We might reach a double bottom in most assets,» said Merten.

The analyst is confident that a sustained bullish trend in the market is unlikely until the Fed starts to increase liquidity in the economy. Merten noted that bitcoin was trading in a sideways trend from March to October 2023, unable to break through resistance levels between $ 28,000 and $ 32,000. Therefore, the cryptocurrency enthusiast advised investors to take a cautious approach: wait for clear signs of increased liquidity, which, in his opinion, are crucial for bitcoin.

«Bitcoin thrives when there is an increase in the money supply in the market and an optimistic attitude among risk-taking investors. However, none of these conditions are currently met,» the analyst explained.

In September, Mr. Merten suggested that the cryptocurrency market would continue to decline and doubted that the cryptocurrency market capitalization would reach $ 10 trillion in the coming years due to the reduction of liquidity in the markets.

As of the morning of October 11, the main cryptocurrency lost another 1.85% and is trading at $ 27,108. According to CoinMarketCap, the market capitalization of bitcoin is $ 528.9 billion, and daily transactions exceeded $ 11.4 billion. The market dominance of BTC amounted to 50.1%.