Bitcoin is not doing well, and protocols like Celsius are putting extra pressure on BTC prices.
CEO of asset management company DoubleLine Capital, Bond King Jeffery Gundlach, while talking to CNBC, has warned that he expects Bitcoin’s price might fall much more; therefore, the implosion may not be done yet. According to the investment manager, a further 50% decrease in Bitcoin’s price to $10,000 would not be surprising.
He opined that the trend in crypto was plainly not favorable, given that it had already peaked. That’s why he reminded the audience that he was here in July of last year when Bitcoin was a whopping $60,000 high. And then, the price was reduced to $30,000. After that, BTC bounced, but that bounce was short-lived, and now the top crypto is trading at $20K.
At this point, The CEO claims that he isn’t optimistic about the value of Bitcoin. Even if the price reaches $10,000, Gundlach wouldn’t be startled at all.
“The trend in crypto is clearly not positive… So I’m not bullish at $20,000 or $21,000 on Bitcoin. I wouldn’t be surprised at all if it went to $10,000.”
Current Market Situation
On Monday, the cryptocurrency sector was on edge as bitcoin fought to hold above a critical level. Investors feared that issues at large crypto firms might trigger a broader market shakeout, and industry analysts said BTC could potentially fall another 50 percent more.
The price of Bitcoin fell by about $30,000 throughout the first week of June and continued to decline until the 20th of June, when it reached its current price of just a hair over $20,000. As a direct consequence of the precipitous drop, the entire global market valuation for all cryptocurrencies has fallen below $850 billion for the first time.
According to market participants, additional price drops might have a domino effect, in which other cryptocurrency investors are obliged to sell their holdings to cover losses and satisfy margin calls.
A significant portion of the stock market has also seen a steep fall recently. The performance of emerging market equities this year has been negative by 15%. The majority of equity markets are now declining.Â
Nasdaq has lost 28% of its value, and Bitcoin has lost 53% of its value so far this year and 45% of its value only since the most recent meeting of the Federal Reserve. At the time of this writing, the price of one Bitcoin is $20,535, representing a gain of around 2 percent from the 2022 low of $20,111 that was hit the previous week.
Celsius and 3AC
The cryptocurrency industry’s lousy news weeks continue as the focus has shifted to crypto lending organizations that guarantee big returns for depositing digital currency. After a business with roughly $12 billion in crypto assets under control suspended withdrawals for clients last week, there was speculation that Celsius Network was insolvent.
The biggest problem for the Bitcoin and entire crypto market is that if Celsius Network cannot stay afloat and Bitcoin price falls below $20K, there would be some Heavy Celsius Liquidations seriously affecting BTC price.
Furthermore, Three Arrows Capital (3AC) said it had sustained massive losses. 3AC spent $200 million on the failing Luna protocol, which collapsed last month. 3AC’s founders claim it has legal and financial experts. The company may sell its assets, but it’s open to being helped out.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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