25% stock market crash? Crypto winter for 1 year? Neither would be ‘shocking’ – Gareth Soloway
The stock market broke a critical support zone on Monday. Although markets are bouncing back today on Tuesday, Gareth Soloway, chief market strategist of InTheMoneyStocks.com, said that if this level is not held, a break-down could take stocks all the way down to pre-Covid highs, representing a 25% decline from current levels.
Speaking to David Lin, anchor for Kitco News, Soloway added that it could be a year before a big rally happens for Bitcoin and the previous highs are taken out.
“Bitcoin is at a pivotal, pivotal point,” Soloway said. “Watch to see where Bitcoin closes today. If it closes below $30,000, it very likely could start a cascading event of a second deleveraging that takes you down to $24,000.”
Soloway’s comments come as stock markets saw their biggest single-day drop yesterday since May on fears that the COVID Delta Variant could set the economic recovery back.
Soloway noted that it’s highly unlikely that governments will shut down the economy again.
For Soloway’s outlook on gold and the trades he’s making now, watch the video above. Follow David Lin on Twitter: @davidlin_TV (https://twitter.com/davidlin_TV)