Bitcoin to drop to $13K before rally as "financial crisis 2.0" unfolds - Gareth Soloway
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(Kitco News) - Bitcoin, which is up around 65 percent year-to-date and is currently trading near $27,000, will fall to $13,000 before another rally, said Gareth Soloway, Chief Market Strategist of InTheMoneyStocks.com and President of VerifiedInvestingEducation.com.
Soloway's comments come after UBS's takeover of the beleaguered Credit Suisse, once the second-largest bank in Switzerland, an event which follows recent bank failures in the United States, including Silvergate, Silicon Valley Bank, and Signature.
"This is a basic financial crisis 2.0," Soloway told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. "We don't know how bad this is going to get… this is like a Lehman moment potentially."
Soloway, who has two decades of experience as a professional trader and correctly called the Bitcoin bottom in 2021, said that the ongoing banking crisis had caused investors to pull their money out of banks and buy Bitcoin, hence explaining the coin's recent rally.
However, he told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, that as the financial system becomes "calmer," Bitcoin would drop to $13,000, and even as low as $9,000 in 2023.
"If you look historically at Bitcoin, it has gone down when the stock market has gone down," he observed. "If the S&P dumps as much as I think, Bitcoin will get caught up in that selling."
Long-term, however, he said that he is a Bitcoin "bull.".
To find out Soloway's outlook on gold, silver, stocks, and Bitcoin, watch the video above.
Follow Michelle Makori on Twitter: @MichelleMakori
Follow Kitco News on Twitter: @KitcoNewsNOW
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