This year has been one of the worst bear markets ever, with Bitcoin (BTC) falling by almost 70% from its all-time high in November 2021. Analysts predict a price turnaround in the near future for the cryptocurrency sector.
Although Bitcoin (BTC) may yet drop more, Coinshares Chief Strategy Officer Meltem Demirors thinks the top cryptocurrency will reach new records during the next 24 months.
Bitcoin Price to See More Pain Before Any Reversal
Demirors stated in a recent interview with CNBC’s Squawk Field that Bitcoin has always been a “cyclical asset,” with drawdowns from peak to trough typically averaging between 80 and 90 percent.
However despite the downtrend, according to Demirors, “there’s still room for some downward adjustment” even if Bitcoin is currently roughly 65 percent below its all-time highs in November 2021.
Demirors noted that Bitcoin had strong support at around $20,000 and that she didn’t think it would fall below $14,000.
She said that BTC would reach its all-time high in the next 24 months, which is wonderful news for long-term investors who have been trapped in a down market for the last 6 months.
Although the suffering has subsided somewhat, it will still take some time. As of right now, BTC is trading at $19,401, down 72% from its peak and 2% over the previous 24 hours.
Given that Demirors anticipates a price reversal may take some time, which might mean more pain in store for less successful crypto projects.
She also pointed out that BTC undoubtedly experienced a significant number of liquidations and insolvencies that had a significant impact on the market. They are referring to $10, $20, or $30 billion in the capital that primarily vanished in a single day.
Demiror predicted that many crypto assets will be depreciated during the bad market, similar to what has happened with IT shares.
There is a very long, very long tail of cryptocurrency assets that people think will go to zero and don’t really have any long-term prospects, the real example is tech shares.