Based on the macroeconomic environment, cryptocurrency analyst Brian Kelly says that Bitcoin BTC/USD could still fall nearly 50% from current levels.
“The good news is that I do think we are getting a lot closer to a generational bottom. The bad news is that it might not be until Bitcoin hits $10,000,” says Kelly.
At the time of writing, Bitcoin was trading at $19,300, close to 9% down in the last seven days.
Kelly compares the current Bitcoin scenario with the Lehman moment, and he foresees the BTC turmoil becoming more widespread.
“We are probably months away from a Lehman moment, meaning that kind of one last flush down. Then, somebody big goes bankrupt that you never expected. We are probably months away from that,” he adds.
Kelly says that a final flush in the Bitcoin down to $10,000, $15,000, or somewhere around that is expected, and he sees that coming in the next quarter or so.
He adds that the Fed has already made a policy mistake and is likely to continue to do more, and that would be a perfect scenario for a bottom in Bitcoin.
Kelly is not the first one to predict this about Bitcoin. Earlier, crypto analyst Edward Moya also shared the same opinion.
Moya had said that Bitcoin could be vulnerable to one more ugly plunge that could have many traders fearing a fall towards the $10,000 area.