Recently, Merten cautioned his sizable audience that if the U.S. economy enters a recession, Bitcoin might suffer a huge decrease.
Nicholas Merten is well recognized as the creator of the crypto-focused YouTube channel DataDash, which has over 512,000 followers. Many people rely on the channel for its wealth of information on blockchains, cryptocurrencies, and the stock market. Merten is well-known for breaking down even the most intricate financial concepts so that even novice investors may understand them.
Merten thinks that a short-term recession may be on the horizon if the prices of commodities like oil, natural gas, and uranium level off or decline. If that happens, he thinks stock prices might fall by around the same amount as they did in October 2022 (a 33% correction). This may mean a dip for Bitcoin to the $15,000 to $17,000 level. According to Merten, this is a positive development that may pave the way for a double bottom across the board in the financial markets.
The Daily Hodl quotes Merten as saying: “[A temporary recession] is going to hurt. The stock market is likely to go back to the levels seen during the 33% correction in October of 2022. Bitcoin’s price may go back to the lows it witnessed before, between $15,000 and $17,000. That’s an excellent situation, by the way. It seems like a double bottom is forming in several asset classes.”
Until the Federal Reserve begins to provide liquidity in the economy, he says, a prolonged Bitcoin bull market is improbable. According to Merten, Bitcoin’s price has remained stuck between $28,000 and $32,000 from March to October of 2023. He advises investors to proceed with caution until there are unmistakable indicators of confidence and increasing liquidity, both of which he sees as essential for risky assets like Bitcoin.
Merten emphasizes that Bitcoin does well when the money supply expands and investors are willing to take more risks. But he points out that at the moment, none of those things is true.
Bitcoin’s price is now at $27,939. This is an increase of 0.5% over the previous 24 hours and an increase of +66.81% over the past year when measured against the US dollar.
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