- Bitcoin is still reeling from Monday’s price crash.
- But experts see positive signs for the market.
- August is historically Bitcoin’s worst-performing month.
Bitcoin suffered its biggest price correction this year, dipping 30% on Monday amid a broader drawdown in global markets.
Geopolitical tensions in the Middle East and panic over economic policy changes in Japan sent the markets tumbling at the start of the week.
Monday’s Bitcoin price slump pushed its price below $50,000 for the first time since February.
August has historically been Bitcoin’s worst-performing month. Since 2013, Bitcoin has only three times ended August with a positive price return.
Still, according to options trading data, Bitcoin traders are betting the price will reach $100,000 before the year’s end.
Here’s what four experts say is in store for Bitcoin.
Bitwise’s Matt Hougan
Matt Hougan, chief investment officer at crypto fund manager Bitwise, said Monday’s price slump offers a huge opportunity for investors.
“Historically, whenever we’ve seen this kind of global economic panic, crypto has traded down initially but ended higher over the next year,” Hougan wrote in a research note.
Hougan said history would repeat itself for Bitcoin, referring to the price recoveries for Bitcoin after the Covid panic in March 2020.
Hougan, however, noted that it was difficult to time the market but that investors should focus on longer timeframes.
BitMEX’s Arthur Hayes
BitMEX co-founder Arthur Hayes is bullish about the future of Bitcoin.
“The Bitcoin price in this cycle is going to go very, very high,” he told DL News in a sprawling interview. Hundreds of thousands of dollars, maybe $1 million.
“There’s so much debt that needs to be rolled over. We’re entering a period where the global monetary architecture is completely changing.
“We don’t know what it’s going to be, but the people who have made the most of the last 80 years are going to be very resistant to change.
DeFi Report’s Michael Nadeau
Michael Nadeau, co-founder of the crypto research platform DeFi Report, is among those who reject the notion that the $300 billion wipeout on crypto markets on Monday was reason to be bearish.
In an X post on Wednesday, Nadeau listed reasons to be bullish like the Mt. Gox payments have mostly been liquidated, expected interest rate cuts in September, and the Bank of Japan saying it won’t hike its rates any further.
“But seriously. You’re gonna tell me all that? And you want me to be bearish?” he said.
GSR’s Brian Rudick
Monday’s global market flash crash has put the US Federal Reserve’s interest rate policy calculus in stark relief.
Market participants are increasingly betting on a rate cut in September, with data from the CME’s Fedwatch tool putting the odds of a cut at 100%.
Crypto will benefit if that happens, according to Brian Rudick, senior analyst at crypto trading firm GSR.
Rudick previously told DL News that the impact of a rate cut would be positive for crypto as the market usually performs well amid abundant liquidity.
Osato Avan-Nomayo is our Nigeria-based DeFi correspondent. He covers DeFi and tech. To share tips or information about stories, please contact him at osato@dlnews.com.
