A popular crypto analyst believes that Bitcoin’s long-term potential has no limits, despite its recent price stagnation.
Pentoshi, an analyst with a large following on X, shares his positive outlook on Bitcoin with his 801,000 followers. He suggests that while he remains optimistic about Bitcoin in the long run, the crypto giant may experience a significant downturn before making a comeback.
“In the case of BTC, I want to start with what I see as the worst-case scenario. Let’s say, $48,000-$51,000, which is essentially 20-25% lower. In this scenario, people should become more optimistic as it goes lower because the potential for gains becomes greater. However, let’s consider that as the maximum downturn. It’s hard to imagine now, but it’s not out of the realm of possibility. This is the point where I would allocate the most.”
According to Pentoshi, the current macroeconomic environment suggests that it’s only a matter of time before the Federal Reserve begins to ease monetary policy – a situation that has sparked significant Bitcoin bull markets in the past.
He also notes that with the introduction of spot market Bitcoin exchange-traded funds (ETFs) earlier this year, more people are seeking exposure to BTC. He predicts that other countries will follow in the footsteps of El Salvador and start accumulating it.
“The upside, however, is limitless because we will soon enter a period of heavy printing. So I see BTC as separate from the altcoin market in the sense that it will likely continue to rise indefinitely through ETFs, with a finite supply and increasing interest from nation-states in the future. Altcoins, in my opinion, will have entirely separate cycles.”
The top trader concludes his Bitcoin analysis by pointing out that the cryptocurrency has experienced parabolic rallies in the past, even before ETFs or the accumulation of nations such as El Salvador.
“BTC can go on its own rampages for months, and that was before ETFs and 401k, plus nation-states.”
At the time of writing, Bitcoin is valued at $62,047.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
