Gareth Soloway, the chief market strategist at InTheMoneyStocks.com, predicts that Bitcoin could adjust to $12,000.
In an interview with Stansberry Research, Soloway said the correction remains possible because Bitcoin has never experienced the current environment, characterized by quantitative easing by the Federal Reserve.
Interestingly, Soloway said that the claim that BTC is a hedge against inflation is a myth.
While Bitcoin was trying to find stability above the $30,000 level, the strategist set the next target for the leading cryptocurrency at $20,000. He stressed that Bitcoin must retest each of the two levels based on historical price movements.
However, he argues that Bitcoin’s long-term prospects remain high, despite increased volatility in 2022.
Commenting on Terra’s collapse, Soloway expressed that the incident could have a long-term positive impact on the crypto sector from a regulatory point of view. He acknowledged that for the industry to grow, regulation is needed, and the collapse of LUNA could activate regulators to protect investors.
Soloway also said that the collapse of LUNA helped Bitcoin and Ethereum stand out as the only reliable cryptocurrencies. However, he noted that for the two assets to remain dominant, at least 95% of the other coins must be erased and reproduce the collapse of the dot.com era.
The collapse was unfortunate for the crypto sector, given that trust is essential for market growth. Still, in my view, decentralization makes these markets possible, and any government intervention would undermine the crypto market.
