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Over $440,000,000,000 in Bitcoin and Other Cryptos Could Be Wiped Out Before Market Bottoms Out: Nicholas Merten

source-logo  dailyhodl.com 23 September 2023 14:49, UTC

A widely followed crypto analyst is warning that the total market capitalization of Bitcoin (BTC) and other digital assets could collapse.

In a new strategy session, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that the total crypto market cap could see a whopping $440 billion decline from its current value.

He also says that Bitcoin could see a more than 43% drop from its current price.

“The best-case scenario here for those who’ve already positioned themselves is that we’re going to find support prior lows at around the $650 billion market cap range or for Bitcoin likely around that $15,000-$16,000 range.”

The total market cap for digital assets at time of writing is $1.092 trillion. Bitcoin is trading for $26,584 at time of writing, down 0.8% in the last seven days.

Merten bases his market cap prediction on liquidity contracting further due to the Federal Reserve’s continued hawkishness, which is also weakening the performance of stocks.

“If big tech plays like Microsoft or let alone Apple here – take a look at this [Apple] monthly candle, 7.4% to the downside here – if these stocks, these multi-trillion dollar assets, are moving lower, bond yields are going up, the dollar is becoming more scarce, what do you think this is going to do to crypto in a world of increased uncertainty and volatility? Are people really going to be rushing to Bitcoin?

I understand the argument that with the halving event, and capped supply, of course, people must go to Bitcoin. But at the end of the day, we see that Bitcoin does best not in periods of time where there’s monetary contraction, but during periods of monetary acceleration, the creation of new money and new credit in the economy.”

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