Bitcoin (BTC) has lost the crucial $20,000 support level, with the market still looking for a possible bottom that can anchor the maiden crypto to a new rally.
Following the recent correction, Jeffrey Tucker, the founder of Brownstone Institute, has suggested that the flagship cryptocurrency could retest the $10,000 level while maintaining that Bitcoin has a long way to go to exit the bear market during an interview with Kitco News on November 11.
According to Tucker, the cryptocurrency space remains risky at the moment while cautioning investors from buying in the dip but advised waiting for the crypto winter to ‘flesh out.’
“I personally don’t believe that this is a good time for anybody to jump in. I think we’ve got a long way to go before this one fleshes itself out, and I don’t think there’s any magic way to look at the technicals of the industry and know when exactly that is. <…> I would say right now if you’re looking to make money, it’s probably a very risky place for your money to be because we could be headed back down to $10,0000 or even much lower,” he said.
Possible trigger for Bitcoin’s rally
With Bitcoin significantly battered by the prevailing macroeconomic condition led by inflation and rising interest rate, Tucker suggested that the main focus should be on the regulatory aspect as it will influence the asset’s next price trajectory.
He noted that regulations continue to tighten for the cryptocurrency sector but maintained that if there is a change of regime in Washington, it will be bullish for Bitcoin.
At the same time, Tucker alleged that the traditional finance players have no interest in seeing crypto thrive, hence the push towards establishing central bank digital currencies (CBDC).
Viability of CBDCs
Despite the ongoing research into CBDCs, Tucker pointed out that such a currency would be a ‘disaster.’ In his view, the author stated that central banks lack the confidence to release a CBDC noting that the currency system would mean cutting out the existing financial system.
In the meantime, Bitcoin has led the general crypto market to record short-term gains in the wake of a minor inflation rate drop. By press time, Bitcoin was trading at $17,300 with gains of about 5% in the last 24 hours. The latest short-term market sell-off resulted from the FTXcryptocurrency exchange crisis.
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Watch the full interview below: