(Kitco News) – Florian Gromis, managing director at Midas Touch Consulting, said that as the Crypto winter intensifies, Bitcoin could break below the $18,000 support level, sending the Bitcoin price as high as $6,000.
“At some point I expect the $18,000 support level to break, and then we could quickly lose another 30, 40 or 50 percent,” he said. “The worst case would be to go down to $6,000.”
Over the course of the year, the price of Bitcoin is down 60 percent, and Ethereum is down 65 percent. Grummes said that the recovery will take place in 2023, and that 2024 could be “the beginning of a new bull market” with Bitcoin halving taking place.
Germis spoke with Michelle McCurry, Editor-in-Chief and Lead Broadcaster at Kitco News, at the Future Blockchain Summit in Dubai.
Crypto winter forecast
The bear market in cryptocurrencies has caused a series of failures for companies such as DeFi Celsius, 3AC crypto fund, and Terraform Labs.
Terraform Labs, for example, saw its stablecoin TerraUSD (UST) and its native token Luna crash, taking out $45 billion in market capitalization within a week.
Germis said these failures are necessary to purge the cryptocurrency market of ineffective or fraudulent companies.
“There have been a lot of scams, a lot of bad projects in this sector, and we have to get rid of them,” McCurry told McCurry. “It’s very painful, I understand, especially for those who are breeding…but it takes time to get rid of all those bad actors.”
However, Germis said that based on the time period of previous bear markets, a rebound is expected in 2023.
“The crypto winter usually lasts 20 to 27 months…so we expect at least another half year, maybe one year, after which the Bitcoin halving in 2024 will bring some light, and possibly the start of a new bull market,” he explained.
Bitcoin Halving will halve the supply of new bitcoins, as well as the reward for their mining. This is expected to make bitcoin more valuable, and could have positive contagion effects that benefit altcoins.
Gromis noted that despite Crypto Winter, countries are developing their own official digital currencies, which will be controlled and issued by central banks. The Federal Reserve, for example, plans to issue its own digital token, FedCoin.
Critics of “central bank digital currencies” (CBDCs) claim that central bank digital currencies will be infringing on privacy and used to financially punish political opponents, as the government will be able to fully track, trace, and control these digital tokens.
According to the Atlantic Council, 105 countries are developing CBDCs.
“if [CBDCs] Happening, Grooms said, “we will all be digital slaves.” “They are trying to position digital central bank currencies as a form of cryptocurrency, but at the end of the day, this is the same form of money that we already have, [except] It’s manageable money, similar to what they have in China with the social credit system.”
Germis highlighted the risks posed by digital businesses in well-functioning democracies.
“If some unelected central banker can generate money out of thin air, and then keep track of how you spend your money, where you spend it… and also figure out what kind of interest rates you earn and what you can do with it, I think it’s not a very nice look for all of us.”
For Grummes’ predictions for gold and Bitcoin, watch the video above
To see how Di Iorio intends to help further decentralize Bitcoin and Ethereum, watch the video above.
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