Famous cryptocurrency analyst predicts bitcoin’s collapse

A cryptocurrency analyst and trader known on Twitter under the pseudonym @CryptoCapo_ shared his predictions about the future of bitcoin with the cryptocurrency community — Capo believes that the BTC will fall by 30% in the near future.

It’s worth noting that @CryptoCapo_'s March prediction of a 50% drop in the flagship cryptocurrency came true, although few people believed in such a negative scenario at the time (in March, bitcoin was trading at over $ 40,000). Given the accuracy of Capo’s forecasts, there are chances that a sharp drop will occur this time around.

According to the crypto analyst, there are currently 2 scenarios for the future of BTC: growth to $ 20,500 and fixation at $ 18,400 (at the time of writing, BTC is trading at $ 19,556). However, any development «will inevitably lead to a drop in bitcoin.» Capo is convinced that the flagship cryptocurrency will trade at $ 14,000 to $ 16,000 in the near future.

A week ago, Arthur Hayes, the former CEO of BitMEX, shared similar predictions, saying that bitcoin would fall to $ 17,500 in the near future. According to Hayes, the situation in both the traditional and cryptocurrency markets is very unstable, and bitcoin directly depends on the further actions of the US Federal Reserve. From November 2021 to the present day in 2022, dollar liquidity conditions have deteriorated significantly. «What will happen to dollar liquidity? By the end of this year, the Fed is seeking to reduce the size of its balance sheet, and the Treasury is issuing a large amount of debt to finance the government. Both of these actions remove liquidity from the system. This will lead to a drop in momentum and a collapse of the hryvnia. So we are preparing for lows of $ 17,500,» Arthur Hayes wrote.