Bitcoin fell below $21,000 after the IMF's recession warning. However, some are still waiting for B
The PlanB analyst urges investors to ignore the momentary noise, and instead wait five years to see the seven-figure price of bitcoin.
Today, the exchange rate of the main cryptocurrency for the first time in eight days fell below $ 21,000 on the eve of Wednesday, when the US Federal Reserve should make another decision to combat inflation by raising interest rates.
After the opening of Wall Street at 16:30 Moscow time, the BTC/USDT trading pair came out of the sideways movement and dropped to $20,706 according to the largest cryptocurrency exchange Binance. Thus, bitcoin has fallen by more than 14% compared to the maximum of $24,276 recorded on July 20. An increase in the interest rate makes money more expensive and dramatically reduces the ability of investors to invest in risky assets such as cryptocurrency.
The IMF's publication of the July forecast for the global economy also played a role, according to which we are waiting for a significant slowdown in global growth, which should average 3.2% this year and 2.9% in 2023. In addition, the forecast says:
The real GDP growth of the United States will be only 0.6% in the fourth quarter of 2023 on an annualized basis, which will make it increasingly difficult to avoid a recession.
A recession is usually understood as a slowdown in economic growth over two or more quarters. It is likely that the US is in this state right now. At the same time, the United States authorities stubbornly deny this. For example, the country's Finance Minister Janet Yellen acknowledged that the US economy is slowing down, but clarified that this is not a recession, but "a necessary phenomenon after rapid growth."
A trader and analyst at Rekt Capital, popular on Twitter, stated that bitcoin has already managed to lose its uptrend, while the expected Fed meeting has not yet taken place. In addition, he drew attention to an important circumstance: The asset failed to find the 200-week moving average (200WMA) as support, as the weekly candle closed below this critical level.
1-WEEK BITCOIN CHART AND 200-WEEK MOVING AVERAGE. SOURCE: REKT CAPITAL
However, there are people who do not exchange for some weekly charts, but think for years. The famous analyst PlanB, the creator of the modelStock-to-Flow, predicted the day when both US stocks and bitcoin will reach new historical highs. He tweeted:
Some look with fear at macroeconomics, bitcoin's connection with the stock market, etc. My opinion: over the next 5 years, the S&P 500 will be in the range of $5K-$6K, and bitcoin - between $100K and $1 million.
https://coin-signal.com/cryptonews/bitcoin-fell-below-21000-after-the-imfs-recession-warning-however-some-are-still-waiting-for-btc-at-a-price-of-1-million/
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