Bitcoin crash is not over; $10K is next before the Fed pauses in December bottom markets – Ben Armstrong
(Kitco News) – Bitcoin price has fallen 60 percent over the year, but the crash is not over, said Ben Armstrong, founder of BitBoy Crypto, who predicts a bottom as low as $10,000.
He added that the Federal Reserve, which has raised interest rates by 300 basis points over the year, will stop tightening in December, sending markets bottoming out.
“The pressure from Cathie Wood, from the UN, from the world and from countries that have gigantic energy crises right now [will result in pressure] in December,” Armstrong said. “The Fed is going to announce that they’re going to stop raising interest rates … so at the end of November, we’re expecting a bottom around $14,000, but it could certainly go to $10,000.”
Armstrong spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News, at the Future Blockchain Summit in Dubai.
Bitcoin Breakout
Before Bitcoin breaks out and reaches all-time highs, it will “break down” and reach lower prices, Armstrong said.
“We mapped the four-year period [Bitcoin] cycle, figured out where it’s going to be, where it’s going to bottom, and the price range,” he explained. “Traditionally, we get an 85 percent move for Bitcoin… [which is] a range of $10,000 to $14,000. That’s where we think it’s going to go.”
Bitcoin is currently trading between $18,000 and $20,000.
Armstrong also argued that $17,000 is a “psychological” support level, adding that at key support levels there could be a temporary “pop up” in the Bitcoin price, as traders buy it at a perceived bottom.
He pointed to the upcoming US mid-term elections as crucial to the timing of a Bitcoin market bottom.
“Three to five weeks after the midterm elections, we’ve traditionally seen Bitcoin bottom,” he said. “Now [Bitcoin] begins to match that time period.”
Will Ethereum Overturn Bitcoin?
“Flippening” is a prediction among some cryptoanalysts that Ethereum will overtake Bitcoin in terms of market cap.
Armstrong said the flip is likely to happen, given Ethereum’s “deflationary” nature.
“I think the market cap of Ethereum will, as we call it, flip Bitcoin,” he said. “The merger … brought the inflation rate down [of Ethereum] by 95 percent.”
The Ethereum merger, which took place on September 15, transitioned the network from proof-of-work to proof-of-stake. It also reduced Ethereum’s energy consumption.
“Right now, Web3 is Ethereum,” Armstrong stated. “It’s a no brainer…Ethereum is going to pass Bitcoin in market cap in this next bull run.”
To find out Armstrong’s price targets for Ethereum, as well as his favorite altcoins, watch the video above.
Follow Michelle Makori on Twitter: @MichelleMakori
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