Leading experts in the digital asset industry have voiced concerns over the trajectory of Bitcoin BTC/USD amidst global economic and geopolitical challenges.
These market experts suggest that while Bitcoin has shown resilience in past crises, the current economic climate combined with global unrest could push the leading cryptocurrency to decline further.
As the digital currency industry prepares for Benzinga's Future of Digital Assets conference on Nov. 14, the cryptocurrency market remains volatile. This volatility is anticipated to be a major talking point at the conference.
Markus Levin, co-founder of XYO Network, told Benzinga that ongoing disruptions from conflict in Europe and the Middle East may force the Federal Reserve to maintain higher interest rates, negatively impacting Bitcoin and the broader digital asset space.
He warns that unexpected global disruptions might alter the traditional four-year crypto cycle.
"If we zoom out and look at the longer term, I think we’ll eventually return to a more bullish market environment. But it’s certainly possible that all this disruption we are seeing globally could make the next bull cycle play out differently. It could be shortened because of further disruptions caused by war and inflation," he added.
Zachary Townsend, Co-Founder and CEO of Meanwhile, emphasized Bitcoin's resilience, particularly its potential to serve as a hedge against instability, akin to gold.
However, he cautioned about a looming debt crisis that could lead to fiat debasement, a scenario where Bitcoin typically thrives.
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"Bitcoin is showing more glimmers of a decoupling from equities. It’s important to note that when the banking crisis struck earlier this year, Bitcoin didn’t experience a major sell-off. It gained momentum. There does seem to be a trend in which Bitcoin, not unlike gold, is being recognized more and more as a hedge against instability," Townsend told Benzinga.
Bob Ras, co-creator of Sologenic, believes Bitcoin's dominance will persist, but a significant rally in the near future seems unlikely given the current global unrest.
He also pointed out that if proposed Bitcoin ETFs are approved, it could be a potential catalyst for the digital asset sector.
Phillip Shoemaker, executive director of Identity.com, gave Benzinga a detailed forecast of what's ahead.
"As the world continues to slip in the direction of war, Bitcoin will almost certainly fall further. It’s already gone below $27,000, and it looks somewhat weak at the moment. I think the question is whether it will fall below $25,000, which is a serious level of support," he said.
"If that level can be held during this time of crisis, then I think we’ll likely see a recovery and then a return to stronger momentum. But if the $25,000 level is breached, then I think further downside should be expected," Shoemaker added.
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