- A wide market crash may happen eventually, but likely not in October, chief market strategist Gareth Soloway says.
- He predicts Bitcoin falling to a $20,000 low, but also acknowledges the sense in crypto analysts’ $100,000 Bitcoin projection.
A wide-sweeping market crash may happen when markets begin to decline following a short-term rebound. These are the opinions of Gareth Soloway, chief market strategist at InTheMoneyStocks.com
During a recent interview, Soloway discussed his long-term and short-term crypto and stock market outlooks. He also spoke about when the world’s biggest market crash was likely to happen. On this, he said:
This might eventually come, but I am not in the camp that it’ll happen in October. I think the Fed again has too much money that they can pump into the markets.
Renowned crypto analyst PlanB expressed similar sentiments, pointing to a greater than $63K Bitcoin level by the end of October.
Additionally, Soloway noted that Robert Kiyosaki, author of the popular finance book “Rich Dad Poor Dad,” was alluding to a secondary effect when he projected a general market crash in October. There might be a huge market collapse following Evergrande’s contagion. A “black swan” might just appear where you least expect it to happen, he said. Soloway, however, reassured that such a decline would more likely take place gradually, rather than a rapid drop.
Gareth Soloway on a possible market crash
Once markets reach new all-time highs, they don’t experience a sudden dampening. This is because they are too many people waiting to buy the dip. Since 2009, the Federal Reserve has worked to prevent such sudden drops, Soloway added. Moreover, markets recover within a month or two after significant corrections, such as that of March 2020. All in all, people have been conditioned to buy whichever kind of drop.
That said, the market strategist sees Bitcoin (BTC) at a $20,000 downside target.
I still anticipate whether you go a little higher to $50,000, which I think is likely you’ll then start to roll over. Eventually breaking $40,000 here and trading between $30,000 and $40,000 before breaking that support. At $30,000 and going down to that $18,000 to $20,000 marker, so again as of now, this is the price action that generally you would anticipate,
Nevertheless, he noted that a $100,000 Bitcoin is a reasonable argument and such a scenario is highly likely to materialize. For the time being, though, he sees the chart as firmly defined by the digital asset’s previous two cycles.
Per our data, BTC was changing hands at $50,160 at the time of reporting, 5.5 percent up on the day. The day’s gain has also been reflected in the wider crypto market. Other more bullish analysts, such as the prominent PlanB, hold strong opinions of Bitcoin going above the $135,000 mark by the end of the year. Such positive sentiments have reverberated in the market, seeing institutional investors reroute their attention to Bitcoin.