The analyst from the consulting firm Cane Island Alternative Advisors stated that the probability of the first cryptocurrency's price rising has dropped from 75% to 25%, while the probability of it falling to $70,000, on the contrary, has increased to 75%.
According to Timothy Peterson, the collapse of BTC will be provoked by a trade war initiated by U.S. President D. Trump:
‘In just two days, the situation has completely changed, and BTC may return to the historical maximum of 2021, which is $70,000. Investor sentiment towards high-risk assets is deteriorating.’
The analyst presented a chart that allows for comparing bearish trends in the Bitcoin market since 2015. It includes the Peterson Lowest Price Forward metric — a tool for determining the long-term bottom price of the first cryptocurrency. According to the analyst, the chart provides data-based expectations of market participants: what may happen to BTC quotes and what support level will be key for it.
Investors are feeling anxious and trying to protect themselves from further shocks in the crypto market, the chart shows. A negative news background and global uncertainty create an unfavorable environment for cryptocurrency, the expert explained.
Earlier, representatives of the American investment bank JPMorgan stated that BTC is losing its status as 'digital gold' due to excessive volatility and an increasing correlation with the stock market.
