Bitcoin Will Crash To $12,000, Says NYSE-Listed Investment Firm

Analysts Barry B. Bannister and Thomas R. Carroll of investment bank Stifel estimate that Bitcoin might fall to as low as $12,000 in the coming months in their call of the day on Monday.

It is included in MarketWatch’s financial market roundup piece,

Bitcoin BTCUSD, which is sensitive to slower global liquidity and a higher dollar, is another casualty that Bannister and Carroll anticipate to see. If global M2—a measure of the money supply—drops to low single digits year-over-year, as expected, Stifel strategists see bitcoin sliding from about $34,000 to $12,000.

As the global pandemic ends, the M2 supply – or the total amount of “near money” such as cash, checking and savings accounts, mutual funds, and other less liquid assets – should fall once more. During the pandemic, the M2 supply in the United States increased by roughly 3 trillion dollars from February to August.

This significant increase reflected residents’ difficult economic circumstances and the Federal Reserve’s measures of decreasing interest rates to lessen the burden on individuals. Interest rates will rise now that the pandemic is nearly over, and individuals will be tempted to spend rather than invest their money once more.

According to analysts at Stifel, the price of Bitcoin could decline significantly since people will have less additional cash on hand to invest in crypto.

Is Bitcoin’s Price Increasing?

Despite the fact that Stifel experts have forecast a bearish trend in the next weeks, the market does not appear to concur. BTC is currently trading at roughly 36k, far above the 28k low from earlier this month. Even while Bitcoin’s year-over-year movement resembles that of M2, the pattern could be short-lived. The fact that there will be less cash on hand as the pandemic draws to an end does not indicate that new or existing investors will abandon BTC and crypto.

Indeed, the more established analysts discuss cryptocurrency, the more new investors will consider it viable. Investors will continue to experience movement outside of regular patterns as a result of occurrences that these markets have never seen before, such as a global pandemic, thanks to the acceptance of both crypto and blockchain technology.

Will the market, however, remain stable?

As new technology and major company enter the market, the crypto market will continue to keep its ground. Furthermore, when market analysts like Bannister and Carroll from the Stifel investment business discuss the price, the bitcoin market will always experience movement. The fact that organizations like these are keeping a close eye on Bitcoin’s price shows investors that blockchain technology is a force to be reckoned with.