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<source: tradingview, binance>
The CEO of the trading firm Eight, Michaël van de Poppe, conducted an analysis and stated in a recent YouTube video that there is a shift about to happen for risky investments. The analysis predicts that the value of Bitcoin could decrease to $20,000 and that the U.S. will not be successful in controlling inflation.
Michaël van de Poppe predicts that the U.S. economy is likely heading towards a recession. Due to uncertainty surrounding the impact of incoming economic data on the market, he thinks it's possible that the positive trend seen in cryptocurrencies and stocks could change and become negative.
Poppe cites that while Bitcoin had a 40% increase in January, he believes it's a possibility that it may have a disappointing performance in February.
Michaël van de Poppe believes that there is no chance for a smooth economic landing and that the market trend will continue to decline in the long term. He attributes a probable recession in the U.S. to the large interest rate increases made by the Federal Reserve.
If there is a decrease in the value of Bitcoin, it could drop back down to the range of $20,000 to $21,000.
The outcome of the Consumer Price Index data for January, which will be released on February 14th, will have a significant impact. If the data shows that inflation is not slowing down as expected or even increasing, it will be favorable for the U.S. dollar and harm the positive trend in cryptos.
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<source: tradingview, binance>
The U.S. Dollar Index (DXY) has recently stabilized after declining 13% since mid-2022 when it reached its 20-year high. Michaël van de Poppe believes that the next week or the week after when the Consumer Price Index and Producer Price Index data is released, there could be a start of a rally in the value of the U.S. dollar. He emphasizes the importance of paying attention to the chart.
A higher low would ultimately provide for a better entry point. Some people are discussing the possibility of a decrease in the value of Bitcoin prior to a less impactful economic week.
A well-known trader in the crypto industry, Crypto Tony, believes that a decrease in value followed by a recovery to a higher value would be a good opportunity for investors to buy (go long), and he believes that the bear market is still ongoing.
Crypto Tony stated on Twitter that even if this is the beginning of a bull market (a market with increasing values), which he personally does not believe, it's still possible to make a safe investment by buying at a higher low after a decrease in value.
IncomeSharks, a crypto and market analysis tool, remains optimistic about the crypto market despite concerns. In a tweet on February 3rd, they noted that most bullish investors are not selling their holdings, while bears who were hesitant to invest are now slowly buying. The persistent bear investors who are betting against the market and shorting are driving the price higher.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.