Bitcoin is still reeling from Monday's price collapse, but experts see positive signs for the market. August has historically been Bitcoin's worst-performing month.
Bitcoin suffered its biggest price correction of the year, falling 30% on Monday amid a broader drawdown in global markets.
Geopolitical tensions in the Middle East and fears over economic policy changes in Japan sent markets crashing earlier in the week.
Bitcoin's price decline on Monday pushed its price below $50,000 for the first time since February.
August has historically been Bitcoin's worst-performing month. Since 2013, Bitcoin has only closed August with a positive price return three times.
Still, according to options trading data, bitcoin traders are betting the price will reach $100,000 before the end of the year.
Here's what four experts say is in store for Bitcoin.
Bitwise's Matt Haugan
Matt Haugan, chief investment officer at crypto fund manager Bitwise, said Monday's price decline presents a huge opportunity for investors.
“Historically, whenever we've seen this type of global financial panic, crypto has traded higher early, but ended higher in the following year,” Haugan wrote in a paper. Research note.
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Haugan says history is repeating itself for Bitcoin, pointing to Bitcoin price recoveries after the Covid panic in March 2020.
Haugan, however, noted that timing the market is difficult, but investors should focus on longer time frames.
Arthur Hayes of BitMEX
BitMEX co-founder Arthur Hayes is bullish on Bitcoin's future.
“Bitcoin's price is very high in this cycle,” he told News in a wide-ranging interview. Hundreds of thousands of dollars, maybe $1 million.
“There is a lot of debt that needs to be rolled over. We are entering a period where the global monetary architecture is completely changing.
“We don't know what it will look like, but the people who have benefited the most in the last 80 years are very resistant to change.
Michael Nadeau of DeFi Report
Michael Nadeau, co-founder of crypto research platform Defy Report, was among those who dismissed the notion that Monday's $300 billion wipeout in crypto markets was the reason for bearishness.
in a X post Mt. Gox payments are largely liquidated, interest rate cuts expected in September and the Bank of Japan saying it won't raise rates again, Nadeau listed bullish reasons.
“But seriously. Will you tell me all that? And you want me to be bearish?” he said.
GSR's Brian Rudick
Monday's global market flash crash threw the US Federal Reserve's interest rate policy calculus into stark relief.
With data from the CME's FedWatch tool, market participants are betting heavily on a rate cut in September. 100%.
According to Brian Rudick, senior analyst at crypto trading firm GSR, crypto will benefit if that happens.
Rudick previously told News that the impact of a rate cut would be positive for crypto as the market generally performs well amid abundant liquidity.
Osato Awan-Nomayo Our Nigeria based DeFi representative. He covers DeFi and technology. To share tips or information about articles, please contact him here [email protected].
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