Within the next 24 months, the flagship cryptocurrency, Bitcoin will reach a new all-time high.
Meltem Demirors, the Chief Strategy Officer at CoinShares, made this prediction while speaking on CNBC’s Squawk Box. Demirors noted that Bitcoin has always been a “cyclical asset” with drawdowns from peak to trough at 80 to 90% historically.
Price charts show Bitcoin saw rejection at last week’s $21,700 region. It experienced some support at $20,000 over the weekend and dropped to the $19,700 mark in the early hours of Tuesday. At the time of writing, Bitcoin is currently priced at $19,800, up 0.67% in 24 hours and down by 54% within 6 months.
What CoinShares is saying
Demirors believes there is still room for a downward correction given that Bitcoin is currently 65% below its all-time highs from November 2021.
- Demirors pointed out that there has been substantial support near $20,000, though, and she did not anticipate Bitcoin to drop below $14,000. By 2024, she anticipated, the discomfort would be a distant memory.
- She said: “In the next 24 months, we will see new all-time highs in Bitcoin.”
- A reversal may be some time off, however, Demirors can see “no near upside catalysts” — which could signal more pain in store for weaker crypto projects.
- “We obviously had a lot of liquidations, a lot of insolvencies that had a massive impact on the market,” she said. “We’re talking about $10, $20, $30 billion of capital that has basically evaporated overnight”.
- Demiror predicted that, like tech stocks, a sizable portion of crypto assets would be destroyed during the bear market.
- “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.”