The chief strategist at InTheMoneyStocks.com, Gareth Soloway, has stated that there is a possibility for Bitcoin (BTC), the largest cryptocurrency by market cap, to trade at the $3,500 level once again if it continues to struggle with the macroeconomic environment.
In a recent interview with Kitco News, Soloway stated that Bitcoin (BTC) is facing a worst-case scenario of retracing towards $3,500. According to the strategist, if this happens, the growth of the digital currency will likely pattern its trend after Amazon stock during the Dot-com bubble.
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Gareth Soloway noted:
“There will be a pivot in Bitcoin as it matures as regulation helps people feel more confident. I think in the near term, we’re going to see a little bit of a bounce, then a wave down to $12,000 to $13,000, and then I do worry that you’re going sub $10,000 to $8,000 maybe even worst case scenario $3,500 very small percentage but that would be the equivalent of Amazon.com collapse in the dot com era.”
Soloway further stated that as Bitcoin advances into maturity, it will possibly be treated as gold with the asset dissociating from stock. However, he’s of the opinion that the decoupling may not happen anytime soon.
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He added that Bitcoin would need confidence from institutions to overcome macroeconomic factors. And for institutions to join the Bitcoin bandwagon in numbers, there is a need for a regulatory framework because it brings a sense of comfort among investors.
Meanwhile, Soloway had once claimed that Bitcoin (BTC) is still not safe from crashing to the $12,000 price region, citing the dollar influence. He believes that the strong performance of the U.S. Dollar can negatively impact risk assets such as Bitcoin.
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