Bitcoin crash is not over; $10K is next before Fed pause in December bottoms markets - Ben Armstrong
(Kitco News) - The Bitcoin price has fallen 60 percent over the year, but the crash is not over, said Ben Armstrong, Founder of BitBoy Crypto, who forecasts a bottom as low as $10,000.
He added that the Federal Reserve, which has hiked interest rates by 300 basis points over the year, will pause its tightening in December, leading markets to then reach their bottom.
"The pressure from Cathie Wood, from the UN, from the world, and from countries that are having gigantic energy crises right now [will result in pressure] in December," Armstrong said. "The Fed is going to announce that they're going to stop raising rates… so at the end of November we're expecting a bottom of around $14,000, but it could certainly go to $10,000."
Armstrong spoke with Michelle Makori, Editor-in-Chief and Lead Anchor at Kitco News, at the Future Blockchain Summit in Dubai.
Before Bitcoin breaks out and reaches all-time highs, it will "break down," reaching lower prices, said Armstrong.
"We mapped out the four-year [Bitcoin] cycle, figured out where it should be, where it should bottom, and the price range," he explained. "Traditionally we get an 85 percent drawdown for Bitcoin… [which is] a range of $10,000 to $14,000. That's where we think it's going to go."
Bitcoin is currently trading between $18,000 and $20,000.
Armstrong also claimed that $17,000 is a "psychological" support level, and added that at key support levels, there could be a temporary "pop up" in the Bitcoin price, as traders buy it at a perceived bottom.
He pointed to the upcoming U.S. midterm elections as being crucial to the timing of a Bitcoin market bottom.
"Three to five weeks after the midterm election is when we've traditionally seen Bitcoin bottom," he said. "Now [Bitcoin] is starting to line up with that time range."
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Will Ethereum Flip Bitcoin?
The ‘Flippening' is a prediction, among some crypto analysts, that Ethereum will overtake Bitcoin in terms of market capitalization.
Armstrong said that the Flippening is likely to happen, given Ethereum's ‘deflationary' nature.
"I believe that the market capitalization of Ethereum will, as we call it, flippen Bitcoin," he said. "The Merge… dropped the inflation rate [of Ethereum] by 95 percent."
The Ethereum Merge, which took place on September 15th, transitioned the network from proof-of-work to proof-of-stake. It also reduced Ethereum's energy consumption.
"Right now, Web3 is Ethereum," Armstrong stated. "It's a no brainer… Ethereum is going to pass Bitcoin in market cap in this next bull run."
To find out Armstrong's price target for Ethereum, as well as his favorite altcoins, watch the video above.
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