Peter Chef says that the low price of bitcoin to 20 thousand dollars is possible if it enters the Nasdak Stock Exchange on the market.
Since Bitcoin prices are struggling to pass the $ 84,000 resistance on the upward trend, the BTC calls rise amid a severe correction in the US stock market in the United States. Famous economist Peter Chef believes that if the Nasdak Stock Exchange enters the bear market with a correction of 40 % of the peak, the BTC price can collapse along the way to 20 thousand dollars.
Nasdak’s decline and bitcoin price relationship
Amid the correction of the stock market in the United States over the past few weeks, the NASDAC index has decreased by 12 %. Economist Peter Chef believes that things can turn into BTC if the correction slip into the bear market.
Bitcoin price shares a historical association with Nasdak. NASDAC decreased by 12 % is 24 % decrease in bitcoin, which puts it in about $ 65,000. If the Nasdak Stock Exchange continues to decrease by 20 %, Bitcoin may match $ 55,000.
However, Chef added that Nasdak had historically seen greater corrections while slipping into the bear market. The economist stated that during the point bubble, the Nasdaq Stock Exchange decreased by approximately 80 %, while 55 % decreased during the 2008 and 30 % financial crisis during Covid’s crash in 2020.
Looking at a decrease of an average of 55 %, Schiff believes that even a 40 % decrease in the NASDAQ index can pay the BTC price to $ 20,000. “It is possible that the decrease in this volume of bitcoin collapses to much lower levels,” Chef stated.
However, Peter Chef is not alone in predicting the collapse of bitcoin to these low levels. Last week, the Bloomberg analyst Mike McGlaon expected a BTC crash to $ 10,000, while gold was in a very strong march.
In the short term, all attention will be in the upcoming Federal Reserve in the United States after cooling inflation data in the United States for February. Traders put themselves with a strong increase in daily trading sizes.
Negative gold connection with Nasdak
Unlike Bitcoin, gold showed a negative relationship with the Nasdak Stock Exchange. Since Nasdak reached its climax on December 16, 2023, gold rose by 13 %, indicating a counter -relationship.
Economist Peter Chef stated that if you undergo a 40 % decrease, gold may rise to between $ 3,800. Chef says that these gains can extend more if the bear market leads to a significant decrease in the US dollar.
At $ 3800 of gold and $ 20,000 bitcoin, Chef expects that the value of bitcoin in terms of gold will collapse more than 85 %, challenging Bitcoin’s narration as a value store.
Chef predicts that we may give up Bitcoin backup plans
The economist stated that the difference in the value of bitcoin and gold can challenge the condition of the cryptocurrency as “digital gold”. Thus, Peter Chef believes that this could lead to increased disposal of governments or ETF investors to hold bitcoin in reserves.
He added that the tremendous sale pressure will make it “impossible” to companies such as Microstrategy, filtering enough bitcoin to avoid financial distress. During last weekend, Bitcoin and broader encryption markets did not appear scale. With the decrease in Press Time, Bitcoin is trading by 0.66 % at 83,742 dollars with 79 % daily trading volume to more than 23.21 billion dollars.
Bushan Akolkar
Bhushan is enthusiastic about technology with a severe understanding of the financial markets. His interest in economics and financing has focused on emerging technology and encrypted technology markets. He is committed to continuous learning and remains eager to share the knowledge he acquires. In his spare time, Booshan enjoys reading excitement novels and sometimes exploring his cooking skills.
Responsibility: Is market research before investing in encrypted currencies? The author or post does not bear any responsibility for your personal financial loss.
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