Ex-Grayscale Director Phil Bonello predicts a Bitcoin price drop to $52,000, citing recent market trends and a potential correction ahead.
Phil Bonello suggests a significant Bitcoin correction amid concerns about inflation and geopolitical tensions posing threats to the broader crypto market. The recent drop in Bitcoin’s value saw long liquidations reaching nearly $35 million, further fueling the downturn.
Insights from Phil Bonello and Michaël van de Poppe
Phil Bonello, in a recent post on X, outlined several crucial points regarding the Bitcoin market, including a potential 20% chance of Bitcoin dropping to $52,000. He cited inflation concerns, fiscal spending trends, and the performance of alternative cryptocurrencies as key factors driving this possibility. Bonello emphasized the growing inflation as a significant concern and highlighted ongoing geopolitical tensions and the instability of the Yen as factors expected to impact the crypto market.
Moreover, Bonello noted the recent significant drops in altcoins, with many experiencing over a 50% decline and subsequently retesting support levels. Despite weak Bitcoin ETF flows, he expressed confidence in BTC’s resilience in absorbing such movements. He also anticipates substantial increases in ETF activity as the year progresses.
Additionally, Bonello pointed out that open interest in Bitcoin has returned to levels seen when the price was at $50,000, signaling a significant drop. Various market indicators, such as funding, basis, and skew, currently appear neutral.
Furthermore, crypto analyst Michaël van de Poppe echoed Bonello’s bearish outlook on Bitcoin. He suggested a prolonged period of slow sideways movement for the next 3-6 months, anticipating further corrections in the Bitcoin price. However, he anticipates stronger performance from altcoins during this period.
Bitcoin Price Decline and Market Activity Analysis
The Bitcoin price lost momentum, dipping below the $63,000 mark on Saturday, April 27. At the time of writing, BTC crashed 2.39% to $62,909.50, despite boasting a massive market cap of $1.23 trillion.
Alongside the decline, Bitcoin’s 24-hour trading volume also saw a significant drop, plummeting by 24.62% to $23.39 billion. Coinglass reported that longs exacerbated the decline, with $34.68 million liquidations, accounting for 82% of the $42.19 million total liquidations recorded in the past 24 hours.
Crypto analyst Ali Martinez observed a recent decrease in Bitcoin whale activity since March 14, which could have contributed to the bearish trend in Bitcoin’s trajectory. Martinez further suggested that a surge in whale transactions could potentially ignite a rally in the Bitcoin price.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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