Brownstone Institute Founder Says Bitcoin Could Return to $10,000; Here’s why
Bitcoin (BTC) has lost the crucial $20,000 support level and the market is still looking for a possible bottom that could anchor the maiden crypto to another rally.
Following the recent correction, Brownstone Institute founder Jeffrey Tucker has suggested that the flagship cryptocurrency could retest the $10,000 level, while maintaining that Bitcoin has a long way to go to exit the bear market during an interview with News from Kitco on 11 November.
According to Tucker, the cryptocurrency space remains risky at the moment, while warning investors against buying in the downturn, but is advised to wait for the crypto winter to “develop”.
“I personally don’t think this is a good time for anyone to jump in. I think we have a long way to go before this has more impact, and I don’t think there’s any magic way to look at the technicalities of the industry and know exactly when it is. <...> I would say right now, if you’re looking to make money, it’s probably a very risky place for your money to be because we could be heading down to $10,0000 or even much lower,” he said.
Possible trigger for Bitcoin’s rally
With Bitcoin significantly affected by the prevailing macroeconomic condition led by inflation and rising interest rates, Tucker suggested that the main focus should be on the regulatory aspect as it will affect the asset’s next price path.
He noted that regulations continue to tighten for the cryptocurrency sector, but argued that if there is a regime change in Washington, it will be bullish for Bitcoin.
At the same time, Tucker claimed that the traditional financial players have no interest in seeing crypto thrive, hence the push towards establishing central bank digital currencies (CBDC).
The viability of CBDCs
Despite the ongoing research into CBDCs, Tucker pointed out that such a currency would be a “disaster.” In his view, the author stated that central banks lack the confidence to release a CBDC noting that the currency system would mean cutting out the existing financial system.
Meanwhile, Bitcoin has led the overall crypto market to register short-term gains in the wake of a minor drop in inflation. At press time, Bitcoin was trading at $17,300 with a gain of around 5% over the past 24 hours. The most recent short-term market selloff was a result of the FTX cryptocurrency exchange crisis.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
Watch the full interview below:
