A famous cryptocurrency strategist is determining where Bitcoin (BTC) and the rest of the cryptocurrency markets might go in a worst-case scenario.
In a new strategy session, Jason Pizzino told his 276,00 YouTube subscribers that the total market value of crypto assets could lose another 40% of its value even after this year’s deep correction.
“So for a realistic area, an 80%-82% drop would probably be about $550 billion, and if we’re looking for anything in the middle, make sure you can get $600 or $700 billion. Currently, we’re down by 74% to the level [June] as low as $762 billion.
So, for the drop from where we are currently back to bottom [$762] billion, which represents a 14% drop in the total cryptocurrency market capitalization. This can be very important. You’ll probably get 10% off Bitcoin, 20% off ETH and several percent off in the rest of the market…that’s very realistic.
Somewhere at the bottom of that range ($550 billion) there is a drop of about 40% from where we are currently.”
At the time of writing, the total cryptocurrency market cap is around $887 billion.
As for Bitcoin, Pizzino says a drop of the same size will bring BTC down to levels last seen in July 2020.
“Is it even possible for Bitcoin to drop 40%? From the current price to the significant support levels around $11,000-$11,500, which is the bottom of your cycle buying zone, this is your 40% drop… so it is in a realistic perspective” .
Looking at Ethereum (ETH) competitor Cardano, Pizzino says a deeper ADA correction is possible considering that the smart contract platform lost nearly all of its value during the 2018 bear market.
In a worst-case scenario, the analyst sees ADA dropping all the way to $0.17.
“The previous cycle of the ADA, it was down 98%, so it’s not really unrealistic to think that this could go further into my negative target, maybe 94% – 95% down from the top, which is still lower than the previous cycle.”
At the time of writing, Cardano is exchanging hands for $0.39.
The trader is also keeping an eye on Solana (SOL), which he says could drop below $20 if crypto markets lose 40% of their value. Pizzino also says it’s possible Solana will follow in Cardano’s footsteps and wipe off about 60% of its market capitalization, bringing SOL up to $12.
At the time of writing, SOL is trading at $30.88.
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