Will Altcoins Crash 60% As US Enters ‘Technical Recession’?
The US economy has been in decline for three quarters. The latest GDP report released on Thursday shows the economy shrank by 0.6% from the previous quarter. The Dow Jones reacted strongly to the report released by the Bureau of Economic Analysis, falling 458 points on the same day.
The development shows that the US economy is in a technical recession, but the White House has not confirmed a recession. Bitcoin and Ethereum turned red along with leading altcoins signaling another crypto crash could be in the offing. The global market cap for crypto is now at $981 billion and is only going south every month in 2022.
Also read: Here’s how many times Bitcoin was declared ‘dead’ since its inception
Crypto analyst Jason Pizzino has warned that the coming recession could cause altcoins to take another 60% from current levels. He told his 276,000 YouTube subscribers that the economic and crypto downturn will continue this year and continue until 2023.
Pizzino warned users that the only direction the market could be heading this year and in 2023 could be down. The analyst predicts that leading cryptos could crash anywhere between 20% and 60% over the next 12 months.
“Somewhere between 20% and 60% is what I expect for cryptocurrencies into the final capitulation if we were to see some kind of dump. And potentially they continue to grind that low while Bitcoin regains strength and builds its position as the king again. And so is starting to take off. This is what I expect for cryptos and altcoins, probably in the next one to 12 months. A short-term time frame while they hit, but then they fizzle out for the longer time period,” he said.
Also Read: Bitcoin Price Prediction for October 2022
Coming Crypto Crash: How to Navigate the Markets
The majority of analysts are now predicting that the markets are in murky waters with more problems ahead. Bitcoin at $19,000 and Ethereum at $1,250 are still considered high despite being lucrative at these levels. The markets may advance and reach new lows this year and in 2023.
Therefore, it is recommended to be cautious and not take an entry position until the next crypto crash occurs. The founder of Hex, Richard Heart revealed exclusive to Watcher Guru that Bitcoin could bottom out at $11,000. He also predicted that Ethereum could bottom out at $750 levels. The corrections are almost 40% to 50% further downside from today’s prices.
