A crypto analyst who is widely followed in the crypto community predicts that Bitcoin could follow the historical footsteps of gold and spark a massive rally. Nicholas Merten, the host of DataDash, told his 515,000 YouTube subscribers that BTC could eventually reach a price tag of six figures but notes it will fall further before reaching this milestone.
He said he believes Bitcoin will still see about an 80-85% decline (minimum) before we start seeing any bullish movement. An 85% decline from its all-time high of around $69,000 suggests that it could hit a new low of nearly $10,000.
The crypto analyst believes that as inflation continues to ravage the global markets, people will start moving their capital into Bitcoin, just like the gold rush of the 1970s.
In the 1970s, people started to sour on fiat currencies and move their capital into gold. Bitcoin might be the same for today's generation, but with even more potential than before. Bitcoin's value has been steadily declining for the last 24 hours, dropping 3% over that period. It is currently trading at $20,006.
The digital asset market woke up in the bearish territory, losing more than 5% of its global value after the president of the US Federal Reserve (FED), Jerome Powell, spoke on Friday to reiterate the aggressive approach of the central bank to curb inflation.
Bitcoin (BTC) fell to its lowest price in more than a month, hitting lows of $20,036. The top cryptocurrency was volatile on Friday ahead of expectations from Powell's annual economic symposium in Jackson Hole, Wyoming. Moments before the president's remarks, the currency hit $21,791 but quickly reversed gains just during the remarks.
Powell reiterated tight monetary policy, stressing that the battle against inflation, which has reached a more than 40-year high, is far from over. During his speech, the president hinted that the Fed would continue to raise interest rates as inflation far exceeds the bank's long-term target of 2%. The annual inflation rate in the US eased slightly in July to 8.5% after peaking at 9.1% the previous month.
As we reported, Powell indicated that the central bank's policy to control inflation could bring "some pain to households and businesses," thus painting a somewhat bleak horizon for the US economy.
Major digital currencies reacted adversely to the statements. Ethereum (ETH), the second largest cryptocurrency, posted even steeper losses than Bitcoin, slipping 11%. The cryptocurrency momentarily missed the key $1,500 mark.
Ether traded as high as $1,720 after confirming the official dates for the highly anticipated network upgrade, "The Merge." Ethereum's final transition to proof-of-stake (PoS) is expected to take place in two phases, with the first starting on September 6. The mainnet merger will happen sometime between the 10th and 20th of the next month.
Amidst a wide sea of red numbers, some altcoins post steep declines. Solana (SOL) has lost 9.3% of its value. Avalanche (AVAX) and Uniswap (UNI) also posted notable drops of 10% and 11%, respectively. Others less affected are Cardano (ADA) and Polkadot (DOT), with 5% and 7% setbacks.
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