Gareth Soloway thinks Bitcoin will recover in 2-3 years but stocks will remain bearish for years to come.
A global recession is looming, and analysts and strategists are working round the clock to decipher the future of global markets.
Effects of inflation are making this endeavor even harder. One of these strategists is Gareth Soloway, who works as the chief strategist at InTheMoneyStocks.com. During a recent interview with Kitco News, Gareth had a few insights to share.
First off, it’s worth noting that just last year, Gareth predicted the fall of Bitcoin to the $20k range. As expected, there were those who felt that he was wrong. As it stands now, it seems that he was right in every possible way. At this time, BTC is trading at around $20,764 – as shown on CoinMarketCap.
$10k Is Possible
While Gareth isn’t entirely bearish on Bitcoin, he doesn’t seem to be so bullish on its short-term performance either. According to him, the coin is on its way to the $10k range, but that won’t happen overnight. Gareth predicts that BTC’s price will need to jump up to around $25k – $30k before the bears charge again. When that happens, the coin will free-fall all the way down to the $10k range.
He further says that markets don’t act according to people’s emotions. At the moment majority thinks that 20K will hold for Bitcoin, but markets love to run through stop losses to freak people.
“when you have everyone calling for a low [price] of $20K, you have a lot of people putting stops just under $20K, and it’s the tendency of a market to run those stops, make people freak out, make the weak hands exit, and then you finally get a short-term bottom… I still see more downside, I still think that we will head down to $12K and that a price below $10K is very possible.”
Interestingly, Gareth sees this happening within the next 6 months. Looking at the current market conditions and the widespread expectations of what’s about to come, Gareth may be passing on an important point. For one, there have been heavy sentiments indicating that the crypto market is about to enter what has been dubbed as “crypto winter” when bears take over for an extended period. A similar case occurred back in 2019 when BTC fell to $3k.
However, according to Gareth, this trend will revert in the next 2-3 years and BTC will pump all the way up to the $65k. Gareth’s sentiments of a BTC recovery at that time window may be informed by the market shifts that usually come with a Bitcoin network halving. The next BTC halving is expected to occur sometime in May 2024.
Stocks To Hurt For Years
As for the stocks, the strategist doesn’t see much to be optimistic about, especially since mainstream inflation tends to hurt them badly. He reminded that after the recession of 2008, the economy was quick to recover because the Fed had enough room to act. This time around, they don’t have that many options. The high inflation won’t give much room for printing more money. As such, the stock market will remain down for years until inflation is dealt with.