Over the past week, the Bitcoin price has been halved and fear has permeated the market. With the positive sentiments in the market taking a big hit, even bitcoin bulls are losing their faith.
Veteran Trader Calls Out Bitcoin at Sub $1,000
Earlier in the day, the market experienced another sell-off that saw Bitcoin going down to as low as $4,435 after surging to almost $6,000 following the Federal Reserve’s Sunday announcement of cutting the interest rate to nearly zero and a QE program of at least $700 billion.
At the time of writing, Bitcoin has been trading at $4,900 down 4.57%. In the past 24 hours, $2.75 billion worth of Bitcoin exchanged hands on top ten exchanges with real volume.
The plunge in Bitcoin price has veteran trader Peter Brandt calling out for bitcoin price to dump to sub $1,000 or even $0.
While sharing his experience of living through various market crashes including 1987, 2000, 2008, and the ongoing 2020, Brandt said, “My loyalty is to my capital, not to any market.”
Brandt had previously called for $100,000 as Bitcoin’s new high which according to the stock-to-flow model is projected to be hit before Dec. 2021. Last year, he said that Bitcoin would find its $5,500 around the reward halving.
Now, on being asked if $5,500 is still his bottom or it changed with ongoing market rout because of the coronavirus, Brandt said, “If I interpret the chart without bias, I would say sub $1,000.”
That’s not all, the price according to him could go as low as to zero.
“All along I have stated my belief that there was a 50% chance BTC was going to $100,000 and a 50% chance it would go to $0, or literally zero. Once we broke through 7500 I place my bets on zero,” Brandt said.
The market is currently in “extreme fear,” following Bitcoin going through its third biggest percentage drop in history.
It was on March 12, that the price of bitcoin first started shedding its gains hard. At that point, BTC was trading around $8,000 only to crash to $3,850. The world’s leading digital currency is currently down over 37% in 2020.
Altcoins following bitcoin resulted in wiping out more than $90 billion from the entire market capitalization this past month. The crypto market fell in line with stock markets and even gold.
“The coronavirus has created unprecedented financial and societal disruption. Equities are a leading indicator because a bear market has occurred without the release of any relevant earnings or macro data,” said Goldman Sachs’ chief equity strategist David Kostin.
Now, not just bears but also those who have been bitcoin bulls are now calling for bitcoin doom. However, bitcoin is trying to stay above $5,000 while the stock market and gold continue to suffer.
“I’m not bearish. I just see the test of demand I was waiting for. 4.3 will be defended this time I’d suspect,” said, prominent trader with the pseudonym, CryptoGianz.