Skip to content

Market strategist suggests BTC can drop to $30k, predicts slower institutional adoption

Gareth Soloway, the chief market strategist from InTheMoneyStocks.com, has suggested that bitcoin might experience further price correction to $30,000 after Tesla (NASDAQ: TSLAsuspended the asset as a form of payment.

Speaking to Kitco News, Soloway stated that after breaking the $30,000 barrier, bitcoin might once again trade at $20,000, the 2017 all-time high.

He maintained that a 50% correction in the price of bitcoin is not unusual. In April, bitcoin attained its all-time high of $64,800.

“But I still expect the neckline of this head and shoulders to break and at least to move down to $30,000 and then potentially all the way down to $20,000. Remember, $20,000 was the previous 2017 high. So a retrace to that would make a lot of sense. And again, investors have short-term memories, but if you think about bitcoin, 50% corrections are basically run-of-the-mill for bitcoin. It’s not super unusual,” said Soloway.

The strategist added that the financial sector should take Elon Musk’s cryptocurrency decisions seriously as they might have ripple effects. This is after bitcoin traded below the $50,000 after Tesla made the decision public.

Institutions might be skeptical about bitcoin

Soloway further warned that bitcoin’s institutional uptake might decline following the Tesla decision. According to Soloway, some institutions might be skeptical about bitcoin since investors will question their environmental conservation priorities. Notably, Tesla suspended bitcoin, citing the high energy consumption used in bitcoin mining.

Tesla’s decision came after Musk revealed that his other company SpaceX would be accepting dogecoin for some of its missions. Interestingly, Musk has played a crucial role in bitcoin and dogecoin, promoting the assets through regular tweets.

Musk further revealed that he is engaging with dogecoin developers to make transactions more efficient as he pushes the asset for mass adoption.

Soloway believes that Musk’s support for dogecoin might be ideal because the asset’s current average price of $0.50 makes it easier for investors to buy, unlike bitcoin. By press time, bitcoin was trading at $48,890, dropping 16% in the last seven according to data provided by CoinMarketCap.

Watch the video: Bitcoin price to retrace to $30k, Fed to raise rates this year, where to run? Gareth Soloway

Gareth Soloway, chief market strategist of InTheMoneyStocks, discusses potential corrections for both Bitcoin and the stock markets and trades to make during market volatility.

[binance]

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account?

Services

IMPORTANT NOTICE

Finbold is a news and information website. This Site may contain sponsored content, advertisements, and third-party materials, for which Finbold expressly disclaims any liability.

RISK WARNING: Cryptocurrencies are high-risk investments and you should not expect to be protected if something goes wrong. Don’t invest unless you’re prepared to lose all the money you invest. (Click here to learn more about cryptocurrency risks.)

By accessing this Site, you acknowledge that you understand these risks and that Finbold bears no responsibility for any losses, damages, or consequences resulting from your use of the Site or reliance on its content. Click here to learn more.