Florian Grummes, managing director of investment advisory firm Midas Touch Consulting, suggested that Bitcoin (BTC) could be in line for a further correction below $10,000.
According to Grummes, Bitcoin is likely to find a support level at the $10,000 mark before potentially correcting to around $6,000, while noting that due to volatility, the flagship cryptocurrency could see small price movements to the upside. during an interview with Kitco News on October 11.
The finance professional also noted that a special event would be needed for Bitcoin to break out of the current bear market.
“It’s my worst case right now [Bitcoin at $6,000]. She wouldn’t rule it out. I think $10,000 is probably what’s going to happen, and then we’re going to see a nice bounce and maybe another test of the $10,000 to $15,000 range, like a double bottom at some point, and that would be the final end of the crypto winter, but it still takes time, I don’t think it will happen soon,” Grummes said.
Bitcoin chances of recovering a maximum of $69,000
Additionally, Grummes expressed skepticism regarding Bitcoin’s ability to recapture the all-time high of nearly $69,000 despite bullish events like the 2024 halving. He stated that the liquidity crisis and regulatory uncertainty are factors that are likely hinder the trajectory of Bitcoin.
“If this entire crypto sector can recover as it should or has in the past, then once it’s halved, the entire sector is likely to be in the new bull market. <…> Bitcoin has been rising relentlessly since 2009 <…> Fundamentally speaking, regulation of course could be basically preventing a new real bull market,” he added.
The best hedge against inflation
At the same time, he noted that gold remains the ultimate store of value and hedge against inflation, an element that Bitcoin has yet to achieve.
Previously, Grummes had projected that Bitcoin’s uptrend would likely return within a year. However, he warned investors to expect surprises on the upside and downside as the crypto winter drags on.
Meanwhile, Bitcoin is still consolidating below the $20,000 level. At press time, the crypto was trading at $19,100 with gains of almost 1% in the last 24 hours.
See the full interview below:
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