Bitcoin Still Stuck in Rut! BTC Price Might Drop to Potential Low Of $10K by 2023

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All of the top 10 cryptocurrencies by market value are trading in the green, with the biggest boost seen in Terra and Avalanche. Also, Bitcoin and Tether are marginally up today. The total crypto market volume over the last 24 hours is $79.21 billion, 

For the past two weeks, bitcoin has been stuck in a rut. It has been unable to recapture any weekly support structure or the middle of the yearlong range even in this situation. 

To try to seal in another bullish rally the cryptocurrency would have to hold above $40K-$41K if it can once again recover over $40K. Because it has recently failed to hold and has broken below $38.5K, the next potential stop point is $34K.

Bitcoin Price to Dip to $10K?

According to Stifel’s Chief Equity Strategist and Managing Director Barry Bannister, BTC price might plummet to $10,000 by 2023.

When speaking with Business Insider about bitcoin’s pricing, Bannister stated that tightening Federal Reserve policy and shrinking the balance sheet will have a detrimental impact on bitcoin’s value. 

In the case of bitcoin, the price is tightly linked to the global money supply. As a result, the strategist highlighted this first critical macro element, stating that because the S&P 500 adopted the US dollar as its power basis, any Supply/Demand situation will have an impact on the value of BTC. 

It is anticipated that the US financial situation will tighten if the M2 money supply gauge slows. Bannister, the managing director of Stifel, believes that this will result in a drop in bitcoin values as well as other speculative assets such as stocks and bonds. These are also denominated in terms of interest-bearing loans provided by banks.

As a second macro concern, Bannister said that the Fed’s tightening might halt bitcoin’s growth. Furthermore, the 10-year US Treasury yield has been rising, which will almost certainly result in a spike. Bitcoin transactions are halted or slowed due to overflow. 

“If the rising 10Y TIPS yield pulls gold lower, that also pressures Bitcoin. If Bitcoin divided by gold falls to the low end of its range (Fed tightens). Bitcoin could drop to $10,000 by 2023,” he said.