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Bitcoin To Crash to $10,000? Analyst Nicholas Merten Says These Factors Could Cause BTC To Drop by More Than 60%

source-logo  dailyhodl.com 29 September 2023 12:32, UTC

A widely followed crypto analyst is warning of a Bitcoin (BTC) crash due to several factors, including a possible recession.

In a new strategy session, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that Bitcoin could plummet nearly 63% from its current value after entering a descending accumulation channel that formed back in 2021.

“Something that we need to be accountable for here is the idea that we could possibly come even lower than these levels here, down towards around $10,000. I know it sounds crazy.”

According to Merten, the further decline of market liquidity due to the Federal Reserve’s hawkishness and a possible recession are two of the factors that could trigger the BTC collapse.

“Bitcoin has never been through a recession before. And the unfortunate reality here is that liquidity is relatively scarce in this market…

You need to be modest in your expectations…

It may be a bearish case scenario, but at the same time it is at least one that’s rooted here in the fundamental reality that liquidity is drying up.”

He warns that the macroeconomic environment that helped Bitcoin soar to its all-time high may not be returning anytime soon.

“I understand Bitcoin has had phenomenal performance here over the last decade from 2010 to 2021. But essentially, that was during a period of time where it had much greater growth multiple potential, the halving event had much more of an impact, and Bitcoin had much more Fed and central bank liquidity supporting it.

Over the next couple of years, it may not be that we enter back into that environment, even considering the decline in demographics and changing macro factors where the Fed may need to step in sometimes. They probably are not going to step in so aggressively in order to get inflation back to a modest target and make sure that it stays there.”

Bitcoin is trading for $27,019 at time of writing, up 2.6% in the last 24 hours.

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