Here's Why This Crypto Analyst Sees Bitcoin Plunging To $10,000

Crypto analyst Nicholas Merten has raised concerns about the potential for Bitcoin's BTC/USD price to plummet significantly, suggesting a possible drop to around $10,000.

"Something that we need to be accountable for here is the idea that we could possibly come even lower than these levels here, down towards around $10,000. I know it sounds crazy," Merten said.

This alarming prediction came just as the crypto community is gearing up for Benzinga's Future of Digital Assets conference on Nov. 14, where experts will discuss the evolving landscape of digital currencies and the challenges they face.

Merten emphasized the unprecedented nature of Bitcoin's current situation, noting, "Bitcoin has never been through a recession before."

He highlighted the scarcity of liquidity in the market, stating, "The unfortunate reality here is that liquidity is relatively scarce in this market… It may be a bearish case scenario, but at the same time it is at least one that’s rooted here in the fundamental reality that liquidity is drying up."

Also Read: Coinbase CEO Brian Armstrong Calls For UK Officials Response To JPMorgan Chase's Anti-Crypto Stance

Reflecting on Bitcoin's impressive performance over the past decade, Merten pointed out the cryptocurrency thrived in an environment bolstered by the halving event and significant support from the Federal Reserve and other central banks.

He cautioned the coming years might not offer the same favorable conditions. "Over the next couple of years, it may not be that we enter back into that environment," Merten said.

He further elaborated on the changing macro factors and the possibility that the Federal Reserve might not intervene as aggressively as before to maintain inflation targets.

Read Next: Congressman Questions SEC Chair Gary Gensler On 'Harassment Toward Digital Asset Innovation'

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!

Photo: Shutterstock