Here’s a realistic worst-case scenario for Bitcoin and Crypto, according to analyst Jason Pizzino
A popular crypto strategist maps out where Bitcoin (BTC) and the rest of the crypto markets could bottom out in a worst-case scenario.
In a new strategy session, Jason Pizzino tells his 276,00 YouTube subscribers that it is within the realm of possibility for the total market cap of crypto assets to lose another 40% of their value even after this year’s deep correction.
“So for the realistic zone, probably somewhere around an 80% – 82% drop brings us down to around $550 billion, and if we see something in the middle, you can probably take $600 or $700 billion. Right now, we’re down 74 % to [June] low of $762 billion.
So what a small drop from where we are now back to the lowest [$762] billion, that’s about a 14% decrease for the total cryptocurrency market cap. It can be quite significant. Maybe you’ll see 10% discount on Bitcoin, 20% discount on ETH and throw another several percent on the rest of the market… It’s very realistic.
Somewhere to the bottom of that range ($550 billion) is about a 40% decline from where we are now.”
At the time of writing, the total market cap for crypto is around $887 billion.
As for Bitcoin, Pizzino says a drop of the same magnitude would drive BTC down to levels last seen in July 2020.
“Would it even be possible for Bitcoin to drop 40%? From the current price to significant support levels around $11,000 – $11,500, which is our bottom of the cycle buy zone, that’s a 40% drop… So it’s within a realistic sight.”
Looking at Ethereum (ETH) challenger Cardano, Pizzino says an even deeper correction is conceivable for ADA considering the smart contract platform lost almost all of its value during the 2018 bear market.
In the worst-case scenario, the analyst sees ADA plunging all the way down to $0.17.
“Last cycle for ADA has been down 98%, so it’s not really unrealistic to think this could go even further to my downside target, maybe 94% – 95% down from the peak, which is still less than last cycle. “
At the time of writing, Cardano is changing hands for $0.39.
The trader also has his eye on Solana (SOL), which he says could fall below $20 if crypto markets lose 40% of their value. Pizzino also says it’s possible for Solana to follow in Cardano’s footsteps and wipe out around 60% of its market cap, taking SOL to as low as $12.
At the time of writing, SOL is trading at $30.88.
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Featured image: Shutterstock/Olivier Le Moal
