Crypto analyst Nicholas Merten warned that if the economy falls into recession, the leading cryptocurrency could be badly affected.
In his statement on YouTube, Merten said that if the Fed’s hawkish monetary policy brings about a long-term economic crisis, the value of Bitcoin could decrease by nearly 50%.
BTC may be affected by recession
According to the analyst, the decline in prices of products such as uranium, natural gas and oil may be a signal that a short-term recession is approaching.
“The short-term recession will cause some pain. Stocks will likely hit the lows again, with a 33% correction we saw in October 2022. Bitcoin may also return to a lower range between $15,000 and $17,000 that it has seen before. This would actually be a very good scenario. “We may be facing a double bottom in most assets.”
Meten doesn’t think Bitcoin will enter a bull rally until the Fed starts printing money to support the economy.
“There is no significant Bitcoin trend. Looking at March 2023 to October 2023 certainly doesn’t look like a bull market to me. We broke the ascending channel. Here we cannot clear the clear resistance between $28,000 and $32,000. “I believe it is time to take a conservative approach to where we hope cryptocurrency will go.”
The analyst said that investors should be patient and wait for the period when monetary policy will be in favor of BTC in the future. According to him, this is the lifeblood of risky assets such as Bitcoin.
At the time of writing, Bitcoin is trading at $27,945, according to CoinGecko data.
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