According to Gareth Soloway, chief market strategist, Bitcoin might fall further to a low of $12,000.
In an interview with Stansberry Research, Soloway claimed that the correction is still possible in Bitcoin.
Soloway, interestingly, stated that Bitcoin’s use as a hedge against inflation was a myth. Although Bitcoin is striving to establish stability over $30,000, the strategist set the flagship cryptocurrency’s high-end next goal at $20,000. Based on previous price movement, he believes Bitcoin will return to either of the two levels.
Despite the increased volatility in 2022, he maintains that Bitcoin’s long-term prospects remain bullish. Soloway also said that the current Bitcoin price fluctuation may have an impact on the asset’s adoption by governments after El Salvador’s conference.
From a regulatory perspective, Soloway said in response to the Terra coin crash that the incident may have a long-term beneficial influence on the crypto market. He agreed that for the industry to expand, regulation is required, and LUNA’s collapse may have begun the ball rolling to safeguard investors.
With some investors purchasing LUNA during the crisis, Soloway cautioned that the strategy could not generate long-term returns owing to the dilution of the cryptocurrency. In summary, the market expert observed that the fall was unlucky for the crypto industry, given that trust has been critical to the market’s development.
Furthermore, Soloway believes that LUNA’s collapse is allowing Bitcoin and Ethereum to stand out as the only reliable cryptocurrencies. However, he said that in order for the two assets to remain dominant forces, at least 95% of other currencies need to be wiped and the dot.com period replicated.
