Famous analyst Brian Kelly, known to be a crypto money investor, was a guest of the last episode of the Fast Money program broadcast on CNBC and said that he expects the collapse in the crypto money markets, which lost heavy blood during the year, to continue under the leadership of Bitcoin.
50 Percent Drop Expected in Bitcoin
Brian Kelly, in the last episode of Fast Money broadcast on CNBC, said that the biggest cryptocurrency Bitcoin could fall by about 50 percent from current levels. Kelly stated that he expects the decline in the biggest cryptocurrency to deepen as the macro environment worsens:
“The good news is that I think we are getting very close to a generational bottom. The bad news is that the price may not bottom out until Bitcoin hits $10,000.”
Lehman Moment Prospect
The CNBC analyst is of the opinion that Bitcoin will bottom out with the Lehman moment, which is a scenario that can potentially happen months later. The Lehman moment is used for the moment when there is fear that an asset or industry turmoil may become more pervasive. Regarding this expectation, Kelly said:
"We're probably months away from a Lehman moment, so that kind of final step will come. A big one will go bankrupt in a way you didn't expect. We're probably months away from that."
According to Kelly, the collapse of Bitcoin will be triggered by policy mistakes by central banks and will occur with the loss of leverage in the market:
“The catalyst for this will be rising inflation expectations, and every central bank in the world is making a policy mistake. I think if you take these three combinations, one final exit from all this leverage in Bitcoin is somewhere around $10,000, $15, and the inflation expectations I see coming in the next quarter are increasing. We all know that every central bank has already made a policy mistake and will probably continue to do more, which is the perfect scenario for a bottom in Bitcoin.”