CoinDesk reported:
A widely followed cryptocurrency strategist believes that despite the recent price slump, Bitcoin has unlimited long-term upside potential.
Anonymous analyst Pentoshi told his 801,000 followers on the social media platform X that while he remains bullish on Bitcoin in the long term, the cryptocurrency king could see a major pullback before it resumes its uptrend.
“For BTC, I want to start with the worst case scenario. Let’s say, 48,000 to 51,000, essentially a 20-25% drop.
In this case, the lower it goes, the more bullish people should be as the upside will be that much greater. But let’s call it the max drawdown again.
It’s hard to imagine now, but it’s not out of the realm of possibility. This is where I max allocate.”
Source: Pentoshi/X
Pentoshi noted that the current macro setup suggests that it is only a matter of time before the Federal Reserve begins to ease monetary policy – a situation that has historically triggered massive bull markets for Bitcoin.
He also suggested that with the launch of Bitcoin exchange-traded funds (ETFs) earlier this year, more and more people are rushing to gain exposure to Bitcoin. He then predicted that other countries will follow in the footsteps of El Salvador and begin accumulating.
“However, the beauty of it is there’s no cap because we’re about to enter a rehypothecation era.
So, I believe BTC is separate from the altcoin market as it’s likely to perpetually rise via ETF and with limited supply, people are scrambling for it, including more national states in the future.
In my mind, Altcoins will have a completely separate cycle.”
The top trader concluded by saying that Bitcoin has previously gone parabolic in the past, even before the existence of ETFs or accumulation by countries like El Salvador.
“BTC can run wild within months, that’s before ETF and 401k countries.”
At the time of writing, Bitcoin was valued at $62,047.
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