Bitcoin Has Another 50% Downside Potential, But The Case For Decentralized Finance Has Never Been Stronger – Altcoin Daily
(Kitco News) – The cryptocurrency market, and Bitcoin in particular, remains highly correlated with the stock markets and could potentially see a further break to the downside, according to brothers Aaron Arnold and Austin Arnold who co-founded and host the popular YouTube channel Altcoin Daily.
The Arnold brothers spoke with David Lin, Anchor for Kitco News at the Future Blockchain Summit in Dubai.
Bitcoin’s recent consolidation near the $19,000 to $20,000 support level is reminiscent of the 2018 bear market when “Bitcoin consolidated near $6,000 and eventually fell 50%,” said Aaron Arnold. “Back then, from my memory, a lot of people thought that Bitcoin was the bottom.”
A few reasons why Bitcoin could fall lower include persistent inflation, which would cause the US Federal Reserve to maintain its hawkish stance, a repeat of the 2008 financial crisis in the stock market, OPEC cutting oil production, which would mean higher oil prices, and an escalation of the Ukraine war to the point where Russian President Vladimir Putin is waging war against the West, said Aaron Arnold.
Still, there are some macroeconomic forces that could present a bullish case for Bitcoin, especially in the medium to long term.
“We’re seeing a major bank intercommunicator SWIFT partner with Chainlink. We’re seeing Ethereum go through a successful merger, Cardano after the Vasil hard fork, so we’re seeing developers flocking to these L1 protocols,” said Austin Arnold. “Obviously the news in 2022 and 2023 is macro, but as the world trends more centralized, more permissioned, I think there’s a clear vision more than ever why we need a decentralized, censorship-resistant protocol.”
Aaron Arnold added that now, more than ever, society needs decentralized finance.
“The case for Bitcoin, the case for decentralized finance, open protocols, it’s never been a better case. The world is trending more digital, the world is becoming more centralized. There are tons of people holding your money. We can talk about Russia -Ukraine, the sanctions against Russia, several months ago, the state of emergency in Canada with the truckers. No matter how you feel, and even on a smaller scale, ordinary people in America and Canada, with Paypal…Payal censors your money all the time, it is never a better case for open, more decentralized, more permissionless money like Bitcoin than financial products like decentralized finance,” he said.
For more information on altcoins that do not track Bitcoin and have the best investment potential, watch the video above.
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