- Analyst says he will accumulate cryptocurrencies
- Cryptocurrencies will remain closely correlated to traditional markets
- Bitcoin may drop to as low as the $4,800 mark
Cryptocurrency News Today – cryptocurrency analyst Cole Garner has hinted that the global economy appears to be nowhere near a bottom. Hence, Bitcoin and Ethereum alongside the wider digital asset market will be badly affected. The analyst aired his opinion via his Twitter page. In a series of Tweets, Garner said we are likely far away from the end of the ongoing economic decline.
Garner Claims the World is Heading for a Recession
During a massive tweet-storm, Garner asked the billionaire hedge fund manager, Ray Dalio to say what he thinks about the direction of the global economy. During the recent Ted Connects talk, Dalio said the world is heading toward a depression. He said it’s like what happened in the 1930s that entailed many years of recovery and restructuring of financial models. Here is what Dalio said:
“Just so we are clear about this: a global recession typically leads to 30% to 40% fall in all equities. A large scale recession usually has about 40% to 60% fall. It also has a depression of 60% to 80%. We have not even entered into a global recession yet. We are still a long way to go from hitting that point.”
According to Garner, after surveying 12 of top analysts in the industry to determine their take on the direction the S&P 500 is moving, the result was that a bottom was far.
“There was originally a wide variance (however, the aggregated expectation was at least 50% off the ATH’s.”
Cryptocurrencies Will Likely Remain Closely Correlated
Garner also said that he expects cryptocurrencies to stay highly correlated to the traditional markets in the short-term. However, he warns that Bitcoin might drop to as low as the $4,800 area. He is also of the view that this huge price dip will present an incredible opportunity for investors to load BTC. He cited the recent data that shows that there is a higher number of Bitcoin whales since 2017 December and a larger amount of stablecoins are issued.
The analyst has stressed that he would stack up both Bitcoin and Ethereum. Although he isn’t so bullish about BTC’s chances this period. He expects the coin’s price to decline further and further. Whether his outlook for the digital asset market will play out remains to be seen. One thing is certain and it is the fact that the current economic atmosphere is still dwindling. This has been the case since the coronavirus outbreak hit the world which resulted in a global shutdown. Financial markets haven’t been the same.