- The Bitcoin price is still affected by Monday’s crash.
- However, experts see positive signs for the market.
- August is historically the worst performing month for Bitcoin.
Bitcoin suffered its biggest price correction this year, falling 30 percent on Monday amid a general decline in global markets.
Geopolitical tensions in the Middle East and panic over economic policy changes in Japan caused markets to collapse at the beginning of the week.
Bitcoin’s price crash on Monday caused the price to fall below the $50,000 mark for the first time since February.
August has historically been Bitcoin’s worst performing month. Since 2013, Bitcoin has only finished August with a positive price return three times.
Still, according to options trading data, Bitcoin traders expect the price to hit $100,000 before the end of the year.
Here’s what’s coming for Bitcoin, according to four experts.
Matt Hougan from Bitwise
Matt Hougan, chief investment officer at crypto fund manager Bitwise, said Monday’s price collapse presented a huge opportunity for investors.
“Historically, whenever we have experienced a global economic panic like this, cryptocurrencies have initially been in negative territory but have closed the following year in positive territory,” Hougan wrote in a research note.
Join the community to receive our latest stories and updates
Hougan said history will repeat itself for Bitcoin, citing Bitcoin’s price recovery following the Covid panic in March 2020.
However, Hougan noted that it is difficult to determine the right market timing and that investors should focus on longer time periods.
Arthur Hayes from BitMEX
BitMEX co-founder Arthur Hayes is optimistic about the future of Bitcoin.
“The price of bitcoin is going to go very, very high in this cycle,” he told DL News in an extensive interview. Hundreds of thousands of dollars, maybe $1 million.
“There is so much debt that needs to be restructured. We are entering a phase where the global monetary architecture is completely changing.
“We don’t know what will happen, but the people who have made the most of themselves over the last 80 years will be very resistant to change.
Michael Nadeau from DeFi Report
Michael Nadeau, co-founder of crypto research platform DeFi Report, is among those who reject the notion that Monday’s $300 billion plunge in crypto markets was a cause for pessimism.
In an X-post on Wednesday, Nadeau cited reasons for his optimistic view, including that payments to Mt. Gox had largely been settled, interest rate cuts were expected in September and that the Bank of Japan had announced it would not raise interest rates any further.
“But seriously. You want to tell me all this? And you want me to be pessimistic?” he said.
Brian Rudick from GSR
The sudden crash of global markets on Monday has cast a harsh light on the US Federal Reserve’s interest rate policy.
Market participants are increasingly betting on an interest rate cut in September. According to data from the CME tool “Fedwatch,” the probability of a cut is 100 percent.
According to Brian Rudick, senior analyst at crypto trading firm GSR, cryptocurrencies would benefit if this happens.
Rudick had previously told DL News that a rate cut would have a positive impact on cryptocurrencies as the market usually performs well when there is ample liquidity.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and technology. To share tips or information on stories, please contact him at [email protected].
