Bitcoin could stay below near-$70,000 peak for next two years after latest crypto market sell-off: CZ
Changpeng Zhao, CEO of crypto exchange Binance, thinks Bitcoin could reach its all-time high of nearly $70,000 within a few months to a few years. Bitcoin could stay below its near $70,000 peak for the next two years following the latest crypto market selloff, the CEO said in an interview with The Guardian.
Zhao stated, “I think given this price drop, from the all-time high of 68k to 20k now, it will probably take a while to get back. It probably will take a few months or a couple of years,” adding that “no one can predict the future.”
On Saturday, the price of Bitcoin fell below $20,000 and fell to $17,601 later. The decline also took Bitcoin back below the all-time high of $19,783 it hit in December 2017, a level that many cryptocurrency traders believed Bitcoin would not fall below.
Late in December 2017, Bitcoin reached an all-time high of near $19,783. Bitcoin fell close to the $3,000 threshold as the 2018 bear market began. It repeated this achievement in December 2020, almost three years after first hitting $20K. If history is any indication, this might imply that it could take some time—possibly months or years for Bitcoin to reach its most recent all-time highs.
According to CZ, “We think 20k is very low today. But you know, in 2018, 2019, if you told people that bitcoin will be 20k in 2022, they would be very happy. In 2018/19, bitcoin was $3,000, $6,000.”
Bitcoin price action
Bitcoin traded once again around the $20,000 level amid lingering concerns of a greater shakeout in the broader market.
“Bitcoin has made ‘bottom’ but probably not ‘bottom’,” said Mark Newton, head of technical strategy at Fundstrat Global Advisors. Cryptocurrencies have been moving in the same direction as equities for months as investor interest in risky assets waned amid growing fears of an economic meltdown.
Ian Harnett, the co-founder of Absolute Strategy Research, said past crypto rallies indicate that Bitcoin tends to decline roughly 80% from all-time highs. Such a repeat in 2022 might drag the lead cryptocurrency down nearly 40% to $13,000—a “key support area,” according to Harnett.
At the moment, Bitcoin is trading at $20,527, according to Coinpaprika.
