If you’re a digital assets investor who’s been bummed out by the recent bear market that’s sent Bitcoin (BTC) plummeting from a 2021 high of US$69K per coin to it’s present price at around US$19K per coin, you might take solace in a new prediction that the crypto asset will, sooner than later, be worth US$1 million.
But the major question is, what do you do in the meantime, especially if you’re the type of investor who relies on skimming BTC profits as a means of side income? Do you get a second or third job?
If you’re 62 years or older, have owned your family home for decades and been paying on the monthly mortgage religiously, you do have one excellent solution at hand. That is, applying for a reverse mortgage loan.
If approved, you’ll be able to tap into potentially hundreds of thousands of dollars which you can use to fill in those financial gaps plus help pay for out-of-pocket medical expenses or even purchase “on sale” BTC.
You can receive your proceeds in one lump sum payment or equal monthly disbursements. You can use this calculator to find out how much of a reverse mortgage you’re eligible for.
But what if you’re BTC investor who’s not 62 or older or don’t even own your own home, for that matter? What can you expect in the coming months regarding Bitcoin’s price?
According to a new financial report, while it’s true that BTC attracts tons of price predictions both low and high, one downside figure to the most popular digital asset is said to be US$10K as a result of the present bear market.
As of this writing, Bitcoin is hovering around the US$19K level. This represents about a 71 percent drop from its November 2021 US$69K all time high level. Just doing a short scan on the Crypto Twittersphere will prove that many BTC bears, some of the professionals in the field and others simply loudmouths, are predicting a drop all the way down to US$10K.
This predicted drastic drop is said to be based almost entirely “on the grain-of-salt premise” that during the previous bear markets experienced since 2008, BTC drawdowns always peaked at 80 percent to 85 percent of the all-time highs. This means, even though the current price has dropped to US$19K, we’re still headed down.
If you do the math, the digital asset goes down to about $10K (personally, and this is not financial advice, if this happens, you might want to look into purchasing one whole Bitcoin since you’ll never see that kind of discount again).
What the Survey Says
Bloomberg’s latest MLIV Pulse survey indicates that Wall Street investors along with retail investors all agree “the carnage ain’t over yet.” The survey, which was conducted July 5-8, queried 950 investors as to where the price was going. 60 percent of respondents all agreed: US$10K.
However, nearly 30 percent of the respondents believe that Bitcoin and other cryptos like Ethereum are “the future of finance.” The majority of investors remain a bit skeptical. After all, many of them are Boomers who have difficulty trusting a new system of commerce based entirely on a computer code.
Enter Arthur Hayes
BitMEX CEO Arthur Hayes recently predicted a US$1 million Bitcoin despite the “Doom Loop scenario.” Believed to be one of those investors who was not surveyed by Bloomberg, Hayes remains one of the most respected investors not only in the U.S. but abroad. He is especially respected when it comes to the crypto space. That means his words and predictions usually make major headlines.
Earlier this month, Hayes shared via social media a EUR (Euro) daily chart when compared with the US dollar. He described the situation as a “Doom Loop” which is now taking place in the macroeconomic landscape.
The Euro has reached parity with the U.S. dollar for the first time since the early 2000’s. This situation has been triggered by the Ukraine-Russian war, central bank interest-rate hikes, and sky-rocketing global inflation (the U.S. rate has reached a new 40 year high of 9.1 percent).
The Doom Loop scenario that Hayes espouses means the Euro and the U.S. dollar will both depreciate rapidly which is a boon to hard currencies like Bitcoin and precious metals. Central banks will have no choice but to resort to Yield Curve Control (YCC) in the midst of out-of-control inflation.
Says Hayes, Bitcoin will take gold’s lead. In other words, why would central banks save by using Western fiat currency “when their savings can be expropriated arbitrarily” by digital monetary networks?
If this comes true, Hayes predicts that sooner or later, that US $10K Bitcoin price will shoot upwards of around US $1 million.