Here’s Why the Bitcoin Price May Crash Toward $40K
The post Here’s Why the Bitcoin Price May Crash Toward $40K appeared first on Coinpedia Fintech News
Bitcoin briefly fell below $60,000 on Monday after news that defunct bitcoin exchange Mt. Gox is set to distribute around $9 billion worth of bitcoin and bitcoin cash repayments starting in July.
In a recent strategy session, Aaron from Altcoin Daily analyzed that Wall Street investors are actively working to reduce Bitcoin’s price. They believe that these institutional players see current prices as too high for entry and are pushing for a drop to around $40,000. This theory is built on the idea that Wall Street is leveraging its influence through various tactics to create a market correction.
Here’s how they’re allegedly doing it:
Bitcoin Price Ranges
Historically, Bitcoin’s price has ranged from highs of $73,000 to lows of $55,000. Analysts noted that Wall Street aims to push Bitcoin’s price down from these highs to more attractive entry points for future investments.
However, the launch of Bitcoin ETFs, including those from major players like BlackRock, is seen as a double-edged sword. While these ETFs represent institutional acceptance, they might also be used strategically to lower Bitcoin’s price.
Peter Thiel’s Changing Views
Moving on Aaron analyzed the recent statement by Former PayPal CEO Peter Thiel, a prominent investor, and Bitcoin supporter. Thiel expressed skepticism about Bitcoin’s future growth and said that he is not buying Bitcoin as of now. A notable shift from his previously bullish stance.
Thiel had previously championed Bitcoin as a revolutionary technology that could challenge traditional financial systems. He now questions whether Bitcoin still holds the same potential, suggesting that the cryptocurrency may have been co-opted by institutional forces rather than maintaining its original anti-establishment ideals.
Despite these reservations, Thiel’s investment firm, Founders Fund, has profited significantly from Bitcoin investments and recently doubled down with a $100 million purchase during a price dip.
Institutional Investments and Market Sentiment
They further connect the dots between institutional investment strategies and broader market trends. They highlighted Bitcoin’s recent market volatility, including a significant price drop and a subsequent recovery. This volatility is framed as a tool used by Wall Street to manipulate the market. He further discusses how Wall Street’s control over ETFs and regulatory actions might be used to push Bitcoin’s price lower. For instance, the delay of the spot Ethereum ETF is seen as part of a broader strategy to influence the cryptocurrency market.
The “$40K Bitcoin” Theory
Interestingly, they expect Bitcoin’s price to experience short-term fluctuations, potentially a drop of around $40,000. While the market is expecting a rise, Institutions are allegedly waiting for Bitcoin to hit $40,000 to buy the Bitcoin. Despite current market manipulations, analyst believes that the long-term trend for Bitcoin remains positive. The argument is that Wall Street’s efforts are a temporary measure to correct the market before a significant rise in Bitcoin’s value
Read Also: XRP Price: Can One Explosive Move Push The Price Beyond $6 and $10 levels?
Related Posts
