Bitcoin Expert Fears Extreme Lows, Here’s Why
Dennis Porter, CEO and founder of the Satoshi Act Fund, believes the price of bitcoin will be "very, very low". The cryptocurrency market is collapsing hard while the dollar remains extremely strong. Bitcoin is down nearly 6% in the last 24 hours and more than 8% in the last 7 days. Porter also reveals that many in his inner circle believe the current economic environment is the worst macroeconomic situation of their lives. The strength of the dollar pushes Bitcoin down
The dollar continues to rise as it reaches a new 20-year high. 10-year US Treasuries also strengthened in anticipation of an aggressive Fed stance. Dollar strength sent the S&P 500 and Nasdaq 100 lower, while Bitcoin, which has a high correlation with tech stocks and the technology-based Nasdaq, also fell. The dollar's rally also showed no signs of weakness. The Fed's stance could be more aggressive, according to a Bloomberg report. The common belief is that Fed Chair Jerome Powell will follow in the footsteps of much-admired former Fed Chair Paul Volcker. Volcker is likely to push the US economy into recession with his tough stance on inflation. If the Fed continues to tighten a bit, the dollar could hit higher levels. In the Jackson Hole speech, Powell reiterated his stance on increasing the strength of the dollar to fight inflation. The Intercontinental Exchange dollar counter shows that the dollar is still a third lower than it was in 1985 under the Volcker regime.
How low can bitcoin go?
Experts believe that Bitcoin dominance is currently at support levels. If BTC continues to fall, it could reach very low levels. Renowned cryptocurrency influencer Richard Hart believes Bitcoin will drop to $11,000 before it rises. All eyes are now on the September 13th CPI data release. Favorable CPI data could ease downward pressure from Fed hawkish bitcoin activity and lead to BTC surge.