A widely followed analyst made striking statements about Bitcoin (BTC) price action. According to the analyst, BTC can achieve great success by going through the process of gold in the past.
In a new video he published, the host of the podcast DataDash, Nicholas Merten, told 515,000 YouTube subscribers that BTC could eventually reach a six-digit number. However, the analyst claimed that BTC will depreciate further in the short term.
According to the analyst, high volatility is still a major issue as the cryptocurrency market is still in its infancy. It is normal for Bitcoin to drop 75% from its peak. Considering the macroeconomic conditions and on-chain data, it is possible for BTC to depreciate further.
According to analyst Nicholas Merten, once favorable conditions arise, Bitcoin will rally again. It will go up to $100,000 or even $200,000 into the six-digit zone that many people have been talking about since the previous bull market. Currently, the dollar is the world reserve currency and continues to gain strength. The current economic environment has dealt a heavy blow to cryptocurrencies. However, when the trend reverses, Bitcoin will not fall from the headlines again.
Analyzing past bear markets, the analyst reveals that Bitcoin has experienced an 85% drop from its all-time high. Therefore, the possibility of BTC falling to $10,000 remains. Merten says that as inflation continues to wreak havoc on global markets, people will move away from fiat currencies and move their capital to Bitcoin, much like gold in the 1970s.
According to Mertene, if the Federal Reserve fails to reduce inflation and the US economy plunges into recession, we will lose faith in the world's fiat currencies, not just the dollar. Without stability in the dollar, there will be a lot of global liquidity to channel into different assets, and that's exactly what happened to gold in the 70s. Therefore, this money could head towards Bitcoin. Bitcoin is trading at $20,050, down 3% in the last 24 hours. According to experts, macroeconomic conditions will need to change for the cryptocurrency market to regain momentum. The latest statements of the Fed show that the hawkish stance will continue.