Bitcoin Price Prediction: Fund Manager Warns of Potential May 2021-Style Crash
In a recent Bitcoin price prediction, fund manager Andrew Kang issued a stark warning about the potential for a May 2021-style crash.
Kang highlighted the market’s current vulnerability due to a prolonged trading range and high levels of crypto leverage. His analysis suggests that if Bitcoin breaks below this four-month range, the market could face a significant downturn, potentially driving prices down to the $40,000s.
This scenario would mirror the dramatic correction experienced in May 2021, which saw Bitcoin and other cryptocurrencies sharply decline after a period of rapid gains.
Most market participants are not appreciating the significance of a potential loss of a 4-month range on Bitcoin
The closest parallel we can draw is to that of the range of May 2021 where we also came off a parabolic rally of BTC and alts
$50B+ of crypto leverage here is… https://t.co/R3qAcCajAC pic.twitter.com/B4bpeoZwxo
— Andrew Kang (@Rewkang) July 3, 2024
Bitcoin recently fell below $54,000, driven by Mt. Gox’s transfer of $2.7 billion worth of BTC to a new address. This transfer is part of preparations for a $9 billion repayment to creditors starting in July, causing market anxiety.
Over the past week, Bitcoin has dropped nearly 12%, with 7.5% of the decline occurring in the last 24 hours. The broader cryptocurrency market has also been affected, with Ethereum slipping below $3,000 and Binance Coin trading around $470.
Key points:
In summary, the Mt. Gox transfer and upcoming repayments have caused significant market anxiety, leading to Bitcoin’s price crash below $54,000, reflecting the ongoing volatility and market sensitivity.
The US dollar has continued to weaken, slipping further as markets increasingly anticipate interest rate cuts by
