Heres the Reason Bitcoin Price Could Plummet to 40000
Bitcoin briefly dipped below $60,000 on Monday following reports that the defunct cryptocurrency exchange Mt. Gox is slated to distribute approximately $9 billion in bitcoin and bitcoin cash repayments starting this July.
During a recent strategic session, Aaron from Altcoin Daily analyzed that Wall Street investors are actively maneuvering to drive down Bitcoin’s price. These institutional players perceive current price levels as prohibitively high for entry and are advocating for a correction to around $40,000. This hypothesis rests on the notion that Wall Street is exerting its influence through various tactics to orchestrate a market adjustment.
Here’s how they purportedly aim to achieve this:
Bitcoin Price Dynamics
Bitcoin has historically oscillated between peaks of $73,000 and troughs of $55,000. Analysts observe that Wall Street aims to deflate Bitcoin’s valuation from these peaks to more attractive entry points for future investments.
However, the introduction of Bitcoin ETFs, including those from major players like BlackRock, presents a dual-edged sword. While these ETFs signify institutional validation, they could also be strategically utilized to suppress Bitcoin’s market value.
Peter Thiel’s Shifting Perspectives
Aaron also examined the recent comments by former PayPal CEO and noted Bitcoin advocate Peter Thiel. Thiel expressed doubts about Bitcoin’s future growth trajectory and disclosed that he is presently abstaining from Bitcoin investments. This marks a notable departure from his previously bullish stance.
Thiel had previously championed Bitcoin as a groundbreaking technology poised to disrupt traditional financial systems. His current skepticism suggests that institutional influences may have compromised Bitcoin’s original anti-establishment ethos.
Despite these reservations, Thiel’s investment firm, Founders Fund, has reaped substantial gains from Bitcoin investments and recently reaffirmed its confidence with a $100 million purchase during a market downturn.
Institutional Investments and Market Dynamics
They further draw connections between institutional investment strategies and broader market trends, highlighting Bitcoin’s recent volatility, which included a notable price drop followed by a recovery. This volatility is portrayed as a tool wielded by Wall Street to manipulate market sentiment. They also discuss how Wall Street’s control over ETFs and regulatory decisions could be leveraged to drive down Bitcoin’s price. For instance, the postponement of the spot Ethereum ETF is viewed as part of a larger strategy to influence cryptocurrency markets.
The “$40K Bitcoin” Scenario
Interestingly, they anticipate short-term fluctuations in Bitcoin’s price, potentially targeting a decline to around $40,000. While the market anticipates an upward trend, institutions purportedly await this price level to initiate purchases. Despite current market manipulations, analysts maintain a positive long-term outlook for Bitcoin. They argue that Wall Street’s maneuvers are temporary measures intended to rectify the market before an eventual upswing in Bitcoin’s value.
Read More:
XRP Price: Can One Explosive Move Push The Price Beyond $6 and $10 Levels?
Tags:
Bitcoin
Price Analysis