Connect with us


Here’s Why Bitcoin Expert Fears Extreme Lows




VOC, Voice of Crypto, Bitcoin

Bitcoin prices have been on a steady decline for the past few months. The market is crashing hard as the dollar continues to show extreme strength. Many experts predict that Bitcoin will go to extreme lows if it continues to fall. Dennis Porter, CEO and founder of Satoshi Act Fund, believes that BTC prices will go “very, very low.”

Dollar Strength Sinks Bitcoin

Crypto markets are crashing hard as the dollar continues its upward trend. Bitcoin has fallen close to 6% in the last 24 hours and over 8% in a week. Porter believes that the current economic environment is one of the worst macroeconomic conditions in a lifetime.

The US dollar continues to strengthen as it hits a fresh 20-year high, and this time the reason is the anticipation of an aggressive stance from the Fed. The Treasury bill also strengthened in response, with more investors betting on low rates for longer periods. The dollar’s run led to a selloff in the S&P 500 and NASDAQ 100.

Bitcoin, which has been highly correlated to tech stocks and the NASDAQ exchange lately, dropped dramatically.
The dollar’s rise has gone from strength to strength this year, with no indication that it will slow down soon. Bloomberg recently reported that the Federal Reserve might become more aggressive with its rate hikes.

The hope is that the current Fed Chairman of the Board, Jerome Powell, will follow in Paul Volcker’s footsteps and tighten monetary policy. Volcker’s stance on inflation led to a recession in the US economy.


The Fed’s quantitative tightening is likely to continue, which means that the dollar has a chance at new heights. To help fight inflation, Powell announced that he would like to see the dollar’s strength increase even more.

Will Miners Repeat “History”

Although the overall revenue of Bitcoin miners has shown signs of improvement after two months of falling into a “stalemate.” But the pressure is discharged from the top of the largest BTC miners in Vietnam. The US has quickly returned, leaving investors extremely bewildered at this susceptible period, especially when Bitcoin suddenly plunged to $18,500, causing the entire market to collapse before The Merge.

Because miners are always considered one of the last “lines of defense” to support the price of Bitcoin, if this “wall” breaks, it will form a dangerous sign for BTC. Returning to May 2022, when miner revenue recorded its worst drop this year, they reacted by repeatedly pressuring Bitcoin whales, creating a massive sell-off one month later, selling 100% of BTC output.

The above action from miners has quickly pushed BTC to lows below $18,000. So the question arises: with the BTC price movement falling around $18,700 at the time of writing, will miners still have enough “patience” to once again cope with difficulties?

1H chart of Bitcoin /USDT price

1H chart of BTC/USDT price | Source: Binance

Who Is Selling Bitcoin

The first is Core Scientific. According to the activity report just published, Core Scientific produced 1,334 BTC in August 2022 and sold 1,125 of it, raising about $25.9. This means Core Scientific accepts to sell more than 85% of Bitcoins mined.

From the above move, it can be judged that Core Scientific has made an effort to issue up to $100 million of shares to enhance the company’s liquidity. It seems that it wasn’t enough to help Core Scientific get through the current situation. Therefore, selling off the majority of Bitcoin is the only solution.

Next is Riot Blockchain, which produced 374 BTC in August 2022. However, Riot sold 350 BTC, about 93% of this output, to earn $7.7 million. As of August 31, 2022, Riot held approximately 6,720 BTC, all of which were generated by the company’s self-mining.


How Low Can BTC Go

Experts believe that bitcoin dominance is currently at support levels. If it continues to fall, this might become one of its lowest points in history. Richard Heart, one of the most influential crypto influencers in this industry, believes that Bitcoin will fall to $11,000 before any upward movement.

The upcoming September 13th consumer price index (CPI) data is all anyone can talk about these days. Favorable economic data may cause the Fed to pull back on its hawkish activity and lead bitcoin prices upward.

Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)




Adekunle Joshua is a cryptocurrency writer. He has a deep understanding of the technology and how it can be used to improve the world. James is a strong advocate for using cryptocurrency to make the world a better place. He wants to help people understand the technology and use it to improve their lives.