2 Big Names: Bitcoin Price Will Drop Too Much!

Cryptocurrency markets are experiencing a sharp decline today. Bitcoin price dropped below $19,000 and is currently changing hands around $18,700. Meanwhile, two experts are deepening the bearish sentiment in BTC and conveying their negative comments. Here are the details…

Michael Burry predicts drastic drop for Bitcoin price

The cryptocurrency market is crashing hard today. Bitcoin is showing an extremely bearish trend. It has dropped more than 5% in the last 24 hours. It is currently trading at $18,653. The crypto crash prompted expert investor Michael Burry to predict a 2008-level economic crisis. Burry was one of several experts who predicted the 2008 housing and subprime mortgage crisis. Burry’s forecast of the economic crisis is based on multiple factors. His prediction came just after the crypto market crash.

In the last 7 days, Bitcoin has dropped more than 8 percent. Despite a successful start to the Ethereum merge, ETH prices are showing a very bearish trend. ETH has dropped close to 9 percent in the last 24 hours. Other altcoins such as Dogecoin, Solana, Polkadot, MATIC, and Ethereum Classic also fell 8 to 10 percent. The crypto crash is just one of the factors fueling Burry’s prediction. It also highlights the collapse in the SPAC market. The SPAC market peaked in 2021.

But later it struggled to a great extent. It also draws attention to the collapse in breast stocks. One of the most important factors in his forecast is the current inflationary crisis. The Consumer Price Index reveals that inflation is at record levels. The Fed is making quantitative tightening and interest rate hikes to combat inflation. In his recent Jackson Hole speech, Fed chairman Jerome Powell asked households and businesses to prepare for the pain as the Fed battles inflation. The US economy is going through a difficult period. Not only is it dealing with record inflation, but a recession threatens as well. The market will pay attention to the upcoming CPI release. Back-to-back inflation data showed cooling inflation.

Satoshi Act Fund CEO: BTC will drop very, very low

Dennis Porter, CEO and founder of the Satoshi Act Fund, believes Bitcoin prices will be “very, very low.” Porter also reveals that many around him believe the current economic environment is the worst macroeconomic situation in a lifetime. The dollar continues to recover as it hits a 20-year high. US 10-year Treasury Bills also strengthened on anticipation of an aggressive stance from the Fed. The dollar’s rise caused the S&P 500 and NASDAQ 100 to fall. Bitcoin, which is strongly associated with tech stocks and the tech-based NASDAQ, also fell.

The rally in the dollar also showed no signs of slowing down. A report from Bloomberg highlights that the Fed’s stance could be much more aggressive. The belief is that Fed chair Jerome Powell will follow in the footsteps of the much-acclaimed former Fed chair Paul Volcker. With his hawkish stance on inflation, Volcker plunged the US economy into recession. The dollar could continue to see renewed highs if the Fed continues its quantitative tightening.

In his Jackson Hole speech, Powell reiterated his stance on increasing the dollar’s power to help fight inflation. The Intercontinental Exchange’s dollar indicator highlights that the dollar was still a third lower than it was in 1985 during the Volcker regime. Experts believe that Bitcoin dominance is currently at support levels. Richard Heart, a major crypto influencer, believes Bitcoin will drop to $11,000 before any upside moves. All eyes are now on the September 13 CPI data release.