What will happen to Bitcoin, will it hit $13,000?

What will happen to Bitcoin, will it hit $13,000?

According to Ian Harnet, bear markets in the past have seen bitcoin decline by 80%. In such a case, bitcoin might drop to $13,000.

Ian Harnett, co-founder of Absolute Strategy Research, thinks that Bitcoin's demise may not yet be complete. Since Bitcoin typically loses 80% of its value in such circumstances, he thinks that recent cryptocurrency rallies are evidence of such a fall.

Other related news : The price of bitcoin crashed at $19K.

He used the year 2018 as an example, when Bitcoin fell to $3,000 from a high of $20,000 in the previous year. Ian continued by saying that if the same thing happens again, bitcoin will drop by 40% and may reach $13,000.

We would continue to offer these coins in this setting. It actually is a play on liquidity. What we've discovered is that it's not a store of value, money, or even a commodity.

During the bull market of 2021, Bitcoin reached an all-time high of $69,000. According to Ian, if such a scenario is likely to materialise, bitcoin may reach $13,000, a crucial support level.

The Bitcoins of this world grow with plenty of liquidity. These markets experience intense pressure when that liquidity is removed, which is what the central banks are currently doing.

Inflation grew strong during the current bear market, and the Fed also raised interest rates. The Terra ecosystem's collapse last month marked the start of the main impact. The stock and cryptocurrency markets were severely harmed by all of these issues.

The Celsius issue, which prevented withdrawals, swaps, and trading for more than eight days, occurred after these events as well. Due to a significant loss on its LUNA investment, Three Arrows Capital also showed financial instability.

Following Bitcoin's drop below $18,000 last week, the market is now beginning to stabilise. However, the market should be prepared for another carnage if Bitcoin reaches $13,000.