- In his statement, Peter Brandt, founder and CEO of proprietary trading firm Factor LLC predicted that Bitcoin could bottom at $13,000.
- However, it will take 32 months for investors to see substantial returns on their Investment.
Bitcoin is currently down by 0.17 percent and trading at $19,291. The asset has been trading within the $17,000 and $23,000 price zone for some time now after crashing down from its $69,000 all-time high. Speaking on the current price movement, Peter Brandt, founder, and CEO of proprietary trading firm Factor LLC, believes that the asset would move to and fro within this range throughout the next year.
We [will]just chop between … let’s say $17,000 and $23,000. I think we will bottom here at some point in time, maybe early next year, but then I’m not looking for Bitcoin really to become exciting again for another couple of years.
In his statement, Brandt predicted that Bitcoin could bottom at $13,000. However, it will take 32 months for investors to see substantial returns on their Investment.
The crypto market has seen a severe pullback with most of the leading assets falling by over 90 percent from their all-time highs after the Terra ecosystem collapse.
The market was subjected to additional pressure with the rising inflation and the U.S. Federal Reserve’s interest rate hikes. The annual inflation rate of the US was around 8.2 percent in September. Some crypto platforms have been forced to shut down operations. However, others keep operating normally amid the market pullback. Currently, Investors and traders have a special interest in the Fed’s next meeting of its monetary-policy committee, the Federal Open Market Committee, or FOMC.
Bitcoin establishes a correlation with gold
The crypto winter is expected to be worse as Wall Street expects a fourth consecutive 75-basis point interest rate hike next month. In addition, smaller hikes could be seen after that. Brandt also has similar expectations as he does not see the interest rate hike dropping off. According to him, November 2 could see a 75-basis point increase and another 75 bps on December 14.
I think that the Fed knows that inflation is a killer. The Fed needs to regain its credibility. And to do that, I think the Fed really needs to bring inflation rates back down to at least 4%.
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Bitcoin has for the past years been seen as a risk-on asset. However, it has seen lower volatility compared to stock as traditional markets continue to suffer. Its correlation with gold, however, recorded its highest level in over a year. When Bitcoin was trading above $20,000 earlier this month with a 7-day surge of 3 percent, gold was also trading at $1,700 with a 3 percent surge over the same period.
According to Brandt, Bitcoin’s value is going to be separated from any other markets. Also, the digital asset would be regarded as an ultimate store of value in the next 10 years.
