The founder and chief investment officer of Absolute Strategy Research, Ian Harnett, in an interview with CNBC predicted the price of bitcoin to fall further to the level of $13,000 per unit.
According to Harnett, investors have recently realized that bitcoin cannot be perceived as a full-fledged currency, commodity or store of value. In fact, it is a purely speculative asset.
Harnett also made the argument that, on a historical scale, bitcoin has typically fallen in price by 80 percent from its peak values. Relative to the all-time high of $69,000 reached at the end of 2021, an 80 percent drop in price would mean reaching $13,000.
“In a world where there is ample liquidity in the financial markets, Bitcoin is doing well. When that liquidity is taken away by central banks [as part of monetary tightening], he comes under a lot of pressure,” Harnett said.
In recent weeks, there has been a significant decline in the cryptocurrency market due to the transition of investors to more reliable traditional assets amid the crisis, as well as the scandal surrounding the stablecoin TerraUSD, which has lost its peg to the dollar.
At the time of publication, Bitcoin was trading at $20.4 thousand. The decrease over the past day amounted to 3.17 percent.