According to Gareth Soloway, the Chief Market Strategist of InTheMoneyStocks.com, Bitcoin (BTC) is predicted to experience a drop in value below $13,000 before another rally, despite gaining over 70% this year and currently trading at around $28,400.
This prediction comes amidst recent bank failures in the United States, such as Silvergate Bank, Silicon Valley Bank, Signature Bank, and UBS’s acquisition of Credit Suisse.
Soloway suggests that investors are pulling their funds from banks and investing in Bitcoin, contributing to its recent rally, but as the financial system stabilizes, Bitcoin’s value will decrease, potentially reaching as low as $9,000 in 2023.
Soloway also highlights that in the past, Bitcoin’s value has moved in sync with the stock market during periods of economic recession.
However, he maintains a positive long-term outlook on Bitcoin’s potential for growth, despite his current short-term pessimism. Soloway believes that Bitcoin will eventually recover and continue on its growth trajectory.
He correctly predicted the Bitcoin bottom in 2021 and has two decades of professional trading experience, making him a respected voice in the industry.
He suggests that the ongoing banking crisis and potential stock market sell-off will cause Bitcoin’s value to initially drop, but it will eventually recover and continue its long-term growth trajectory.