Bitcoin has been struggling for weeks now, to keep up with its previous rally from earlier months, all to no avail. Currently trading just a little over $9,500 according to data from CoinMarketCap.
The world’s largest cryptocurrency has definitely seen better days this year as it had recorded a year-to-date high of $13,800 before dropping down to where it is at the moment. However, according to an analyst, the worst might still be yet to come as the king coin could drop further down to $7,500 soon.
Bitcoin Spiral Looms
About a month ago, Bitcoin almost hit $14,000, immediately went back down and has stayed there for quite a while. Even though this isn’t exactly good news, a few analysts really did predict that the coin would pull back before surging again. Still, the near future might be a bit more gloomy.
According to Elixium Crypto, Bitcoin’s unsuccessful shots at >$10,000 might mean a further drop. The analyst tweeted saying:
“We’ve now had 3 failed attempts to stay above $10,000. Odds are in favour of a drop to $7,500. The only thing that can stop this is Tether money printing.”
The Tether Factor
Tether has had a pretty controversial history. Apart from the case against it by the New York Attorney General’s Office regarding an $850 million cover-up involving BitFinex, it has also been accused of playing a significant role in manipulating the price of Bitcoin.
A few months ago, Bitcoin’s price jump above $6,000 appeared to have been directly caused by the Tether treasury’s minting of a fresh batch of the stablecoin, worth $300 million. When this happened, Bitcoin almost hit $9,000.
Also, it was noted that back in October 2018, Tether removed about $300 million of its coin from circulation. The move saw Bitcoin drop at the time, by more than 50%.
Similar to Novogratz
Billionaire bull and Galaxy Digital CEO, Mike Novogratz, said a few days ago that even though he hopes it wouldn’t happen, a drop back to $8,500 for Bitcoin, wouldn’t surprise him. Speaking during a short Bloomberg interview, Novogratz said:
“$8,500 should be the low that holds [and] I’m hoping it doesn’t get down there, but if it does, it wouldn’t surprise me.”
He then went ahead to predict that Bitcoin will revisit its $20,000 all-time high before the year ends.