Bitcoin Price Plunge To $2K Just Weeks Before Halving Expected, Prominent Analyst Claims

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Bitcoin Price Plunge To $2K Just Weeks Before Halving Expected, Prominent Analyst Claims
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The bitcoin miners reward halving is slated for around May 9, basically 54 days away. This event is supposed to be a bullish catalyst based on the fact that bitcoin’s supply will reduce. However, before this event occurs, there’s a possibility that bitcoin could see a drop to the $2K level – which should not be surprising at all.

Tone Vays, crypto analyst and former VP at JP Morgan recently explained why he believes BTC could crash to $2.8K as we head into the May halving.

$2.8K Not Scary Before Halving – Tone Vays

In a recent episode of Tone Vays’ YouTube series dubbed “Trading Bitcoin”, the crypto analyst cited that bitcoin will be in “a lot of trouble” if it loses support at $4,900. The trader believes BTC is due for a huge drop to $2,800 in the near-term, despite the halving being only a few weeks away.

Vays explained that bitcoin’s climb to $14K in June last year formed the basis for an 80 percent drop afterward. The 72.5% drop witnessed last week to $3,800 is “close enough to the 80%”, according to Vays.

The active trader further noted that a drop to $2,8K before the halving can be expected but after the halving, such a level would be “scary”.

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“It’s scary after the halving – it’s not scary before the halving. In fact, I always anticipated it before the halving. So it’s getting there, even if it’s a few weeks before the halving, I am perfectly fine with it.”

Bitcoin Halving Is “Grossly Overrated”

Notably, a number of experts expect a further massive shakeout for bitcoin before a bull market resumes. However, some believe the catalyst for the next rally will not be the halving event, as everyone hopes.

Legendary trader Peter Brandt posited in a tweet yesterday (March 17) that halving is essentially a non-event. He specifically stated that the BTC rewards halving is “grossly overrated.”

Brandt argued that bitcoin’s trading volume is its real supply. Thus, the reduction of the BTC mined on a daily basis is much the same as 2/100 of 1% of bitcoin’s real supply. As such, a reduction of BTC mined daily as a result of the halving is insignificant compared to the real supply (BTC’s daily trading volume).

Bitcoin is currently trading at $5139.13. The top crypto has been struggling to stay above $5K over the last couple of hours. Should Vays’ prognostication come true, we might see bitcoin fall to $2,800 in the near future.


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The views expressed in the article are wholly those of the author and do not represent those of, nor should they be attributed to, ZyCrypto. This article is not meant to give financial advice. Please carry out your own research before investing in any of the various cryptocurrencies available.