The leading cryptocurrency Bitcoin (BTC) fell to the $ 20 thousand band with the selling pressure before the Fed announced its interest rate decision at the June FOMC meeting. The Fed's clear signals of monetary tightening and the expectations that it would increase interest rates by 75 basis points after 28 years triggered depreciation on Bitcoin. After the depreciation, the $20,000 band was seen, but the market, which was relieved by the Fed's decision, gained approximately 7% in value within 24 hours. However, the concerns about the decline in the markets have not subsided. In the midst of concerns, a famous CEO suggested that Bitcoin could be way up to 10 thousand dollars.
Jeffrey Gundlach, CEO of DoubleLine Capital, which has more than $120 billion in assets under his management, claimed that Bitcoin could hit the $10,000 level. The famous CEO, who made statements to CNBC on the subject, said, “The new trend in crypto does not look clearly positive. At $20,000 or $21,000, I'm not optimistic at all. It would not surprise me if it drops to the level of 10 thousand dollars.”
Bitcoin has historically experienced 80% or more retracements from previous ATH levels in previous bearish cycles. Considering the current bottom region, it is seen that Bitcoin has moved away from the $ 69 thousand ATH region by about 65%. It is known that if this rate increases to 80% with a possible downward wave, Bitcoin can also see the level of 13 thousand 800 dollars. However, the famous CEO predicts that these possible decreases will exceed 80% and believes that Bitcoin can test the 10 thousand dollar region.
Stating that the Fed made a short-term action, Gundlach noted that he expects the US inflation to approach 7 percent by the end of 2022, and that he expects the Fed to continue to increase interest rates in the summer months. Gundlach added that the US economy is in a weaker state than some people have stated.