Bitcoin’s Value May Drop by More Than 50% as FOMO Rally Weakens
The price of bitcoin is being sent higher by a rally among investors with a fear of missing out, and the token could plummet back to a level closer to $30,000 as the enthusiasm fades, according to Mizuho Securities’ analyst Dan Dolev.
Speaking to CNBC on Friday, Dolev cautioned investors against buying into bitcoin’s latest surge, with the price of the crypto token soaring 48% to record highs since the start of the year. That’s because interest in the crypto is about to fade, which could cause the price to tank to as low as $30,000, he warned, implying as much as a 54% loss from levels on Monday around $64,750.
BTC Could Plummet to $20,000 in the Next “Ice Age” for Crypto
The price of bitcoin could eventually plunge as low as $20,000 in the next “ice age” for crypto, Dolev added. That would mark a 69% drop from current levels.
“Right now it’s doing well, but I still think longer-term it has no yield support, it’s basically just FOMO, and I think eventually it’s going to go down. I think eventually this is going to unravel that there’s really nothing there,” Dolev said. “I see no value in it personally, so it probably goes back to the 40s or 30s, easily.”
BTC Bulls Disagree with Dolev’s Forecast
Dolev’s forecast is contrary to those from bitcoin bulls, who have said the crypto token has more room to soar this year. The token’s latest rally suggests that bitcoin could climb as high as $150,000 by mid-2025, Bernstein analysts recently predicted, implying 129% upside from current levels.
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