Bitcoin may be within deep bear territory, but Coinshares’ Chief Strategy Officer Meltem Demirors believes the number one cryptocurrency will reach all-time highs in the next 24 months.
Speaking on CNBC’s Squawk Box on July 11, Demirors explained that Bitcoin has always been a “cyclical asset” with large drawdowns between 80% to 90%, historically.
Demirors believes “there is room for some downward correction”. However, the asset has already fallen within the ballpark bottoming range, having dropped 74% from peak to trough since November 2021 highs.
Demirors noted there has been strong absorption at around $20,000 and that she did not expect Bitcoin to fall below $14,000. The CSO predicted that the current agony would be but a distant memory by 2024, noting:
“In the next 24 months, we will see new all-time highs in Bitcoin.”
Currently priced at $19,700, BTC is up 2.15% in 24 hours, and down 12.5% week-on-week.
According to Demirors, a reversal may take some time to materialise as she can see “no near upside catalysts” — which could signal more pain in store for smaller crypto projects.
“We obviously had a lot of liquidations, a lot of insolvencies that had a massive impact on the market. […] We’re talking about $10, $20, $30 billion of capital that has basically evaporated overnight. We certainly expect more pain ahead for tech stocks, growth, and also crypto.”
Demirors said she anticipates a large number of cryptocurrencies to be wiped out in the bear market, similar to what happened with tech stocks.
“There’s a very long, long tail of crypto assets that I think will go to zero, that doesn’t really have any long-term prospect as we’ve seen with so many tech stocks as well.”
The cleansing process may take some time, and strong cryptocurrencies such as Bitcoin, Ethereum and Litecoin which have already stood the test of time will likely come out alive.
Cryptocurrencies aren’t going away. Buy Bitcoin & Litecoin here.
According to Louis Schoeman, managing director at broker comparison site Forex Suggest, the carnage “serves as a massive opportunity or many no-coiners to enter the crypto market for the first time. Fortune favours the brave in crypto right now.”
Since the launch of the ProShares Short Bitocin ETF, institutional interest in betting against Bitcoin has soared as the product broke records. According to the latest Coinshares report, short inflows into the product totalled $6.3 million last week.
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