A popular crypto strategist believes that Bitcoin (BTC) has unlimited long-term growth potential despite its recent price drop.
An analyst who goes by the pseudonym Pentoshi told his 801,000 followers on social media site X that while he is bullish on Bitcoin in the long term, the crypto king could face a significant correction before it goes higher.
“For BTC, I wanted to start with what I think is the worst-case scenario. Let’s say $48,000-$51,000, essentially 20-25% lower.
And in this scenario, people should become more optimistic the lower it gets. [goes] because the upside potential becomes greater. But again, let’s call it the maximum drawdown.
It’s hard to imagine now, but it’s not beyond the realm of possibility. This is the place where I would highlight the maximum.”
According to Pentoshi, the current macroeconomic environment suggests that it is only a matter of time before the Federal Reserve begins to ease monetary policy, a condition that has caused huge bull runs in Bitcoin in the past.
He also says that with the launch of Bitcoin exchange-traded funds (ETFs) on the spot market earlier this year, more people are now competing to get exposure to BTC. He goes on to predict that other countries will follow El Salvador’s example and start accumulating
“However, the growth potential is not limited, as we will soon enter a period of intensive printing again.
So I see BTC as something separate from the altcoin market in the sense that it will likely grow forever through ETFs, but its supply will be limited and people will compete for it, including more countries in the future.
In my opinion, altcoins will have completely separate cycles.”
The leading trader concludes his Bitcoin forecast by saying that he has seen parabolic rallies in the past, even before ETFs or the unification of countries like El Salvador.
“BTC could run wild for months, and that was before ETFs and 401ks and nation states.”
At the time of writing, the price of Bitcoin was $62,047.
Generated image: DALLE3
