Bitcoin Might Still Crash By Another 50%

Vinod Dsouza
Bitcoin BTC Crash

Bitcoin slipped below the $19,000 mark last week, wiping away all profits it generated this year. BTC has been trading in the ‘green’ this week and clawed back above the $20,000 mark. The crypto now hangs in the balance between going further low or shooting up in price in the coming days.

However, considering that the global economy is in murky waters, there are high chances of it going down than heading north. Inflation has skyrocketed to 8.6%, while wages have remained stagnant. The cost of gas, daily essentials, and even rent has hit new highs, making it difficult for people to save. Fears of an upcoming recession are already making headlines and giving jitters to stock and crypto investors.

Read More: Ethereum Price Prediction: ETH Might Crash to $300, Claims Analyst

Jeffery Gundlach, the CEO of asset management firm DoubleLine Capital, appeared on CNBC talking about the future of Bitcoin. Gundlach painted a not-so-rosy picture of the market and predicted more bumpy roads could be ahead.

He predicted that Bitcoin might fall by another 50% from its current price and wreak havoc in the crypto sphere. According to Gundlach, BTC could dip to $10,000 from its current levels of $20,000.

“The trend in crypto is clearly not positive. So I’m not bullish at $20,000 or $21,000 on Bitcoin. I wouldn’t be surprised at all if it went to $10,000,” he said to CNBC.

Read More: How Low Can Bitcoin Go During This ‘Crypto Winter’?

What Happens If Bitcoin Reaches $10,000?

bitcoin btc crash
Source: Pixabay

If Bitcoin reaches $10,000 in the coming weeks, most holders will be deep underwater, facing severe losses. BTC will drag the entire crypto market down, and altcoins could reach new lows. A BTC crash will not be kind to altcoins as they’re bound to be struck. Many new cryptos that popped up in the market, like mushrooms, might even go extinct.

Analysts have predicted that the crypto shake-up is a good sign that weeds away tokens with no use-cases. However, on the downside, investors who poured their hard-earned money into it might be unable to recover their investments. It is advised to remain cautious before going all-in on the crypto market during this period of turmoil.

Read More: Will Bitcoin Go To $0?

At press time, Bitcoin was trading at $20,987 and is up 5.4% in the 24-hours day trade. The leading crypto is down nearly 70% from its all-time high of $69,044, which it reached in November last year.