How far can Bitcoin fall?
Since surpassing US$73,000 and reaching an all-time high on March 13, Bitcoin has fallen more than 21% and is currently trading at around US$57,000.
Many investors question how far the fall of the market's main cryptocurrency could go, with fears that it will return to the level of US$20,000, registered in January 2023.
Valter Rebelo, head of digital assets at Empiricus, rules out this possibility, assigning a probability close to zero for Bitcoin to return to US$20,000.
He points out that Bitcoin is oversold according to the relative strength index and believes that, in the worst case, the cryptocurrency could reach US$50,000, depending on unexpected events that could represent a buying opportunity.
Rebelo suggests that investors consider the current levels as attractive for acquiring BTC, highlighting that the chances of additional significant drops are reduced. He explains that the current lateralization of Bitcoin is typical of post-halving periods, such as the current one, where the reward halving event for miners reduces the supply of new Bitcoins, while demand remains the same or grows, theoretically increasing prices. prices.
In addition to the halving, Rebelo identifies other factors that could boost the cryptocurrency market. He highlights the possibility of monetary easing in the US, with a potential interest rate cut by the Federal Reserve, which would increase global liquidity and the search for risky assets like Bitcoin.
The election of Donald Trump is also seen as a possible positive factor, due to his stated support for cryptocurrencies and possible new favorable regulations.
Regulatory advances, such as the approval of Bitcoin and Ethereum ETFs, are cited as making it easier for investors to access cryptocurrencies through global exchanges.
In short, while Bitcoin faces volatility after reaching historic highs, experts like Valter Rebelo see solid fundamentals for price recovery.
