A
A

Bitcoin (BTC): Michael J. Kramer's pessimistic prediction

Wed 24 May 2023 ▪ 3 min of reading ▪ by Luc Jose A.
Getting informed ▪ Invest

Currently, Bitcoin (BTC) seems to be facing difficulties, struggling to gain momentum. Indeed, the price of the flagship crypto is having a hard time surpassing the $27,000 mark. This situation is causing a lot of concern within the Bitcoin community. There are now many uncertainties regarding the future trajectory of the crypto’s price. However, some analysts are already predicting a bleak future for the queen of cryptos. One of them, renowned strategist Michael J. Kramer, recently expressed particularly pessimistic views on the future price of BTC.

A coin representing bitcoin and a graph symbolizing a decline

Increased regulatory uncertainty impacting the Bitcoin market

While Bitcoin is seen as a remedy for the 2023 banking crisis, analysts express their concerns about its future. Market guru Kramer expects the price of the flagship crypto to drop below $20,000. He made his prediction on Twitter on May 21, expressing worries about an imminent collapse of the Bitcoin market. He emphasized that a decrease in the price of BTC to $20,000 could have significant consequences for the entire stock market. After all, Bitcoin serves as a barometer for various other risk assets.

Regulatory impact and macroeconomic developments: two major challenges for the queen of cryptos

It is worth noting that Bitcoin reflects the sentiment prevailing in the overall crypto market. Thus, if the flagship crypto were to fall below $20,000, it could mean that investors are less inclined to take risks. This situation could promote increased confidence in the stock market and other asset categories.

Furthermore, CoinGecko previously reported that Bitcoin lost 2.1% of its value in the past few days. Analysts are also seeking to understand the factors contributing to the decline in the crypto’s price. It appears that increased regulatory uncertainty plays a crucial role in the current state of the market. Similarly, the macroeconomic climate reduces the chances of observing a significant price increase in the short term.

Recent actions taken by the Democrats in the U.S. Congress indicate that the crypto market is not out of the woods yet. They have decided to strengthen the authority of the Securities and Exchange Commission (SEC) over cryptocurrencies. However, the SEC chairman is convinced that all cryptos are securities. Thus, it is possible that tokens may end up being classified as securities, subjecting them to stricter regulations.

Maximize your Cointribune experience with our 'Read to Earn' program! Earn points for each article you read and gain access to exclusive rewards. Sign up now and start accruing benefits.


A
A
Luc Jose A. avatar
Luc Jose A.

Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.