06-22-2022, 02:26 PM
- Ian Harnett, co-founder of Absolute Strategy Research, said past crypto rallies show bitcoin tends to fall roughly 80% from all-time highs.
- Such a drop in 2022 would likely drag the world’s biggest token down to $13,000 — a “key support area,” according to Harnett.
- The crypto world is on edge as investors grapple with the impact of higher interest rates and liquidity issues at major industry players.
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If crypto’s past bubbles are anything to go by, bitcoin could be about to fall much further.
That’s according to one strategist, who warns the world’s top cryptocurrency is likely to tank as low as $13,000 — an almost 40% drop from current levels.
“We would still be selling these kinds of cryptocurrencies into this environment,” Ian Harnett, co-founder and chief investment officer of Absolute Strategy Research, told CNBC’s “Squawk Box Europe” Tuesday.
“It really is a liquidity play. What we’ve found is it’s neither a currency, nor a commodity and certainly not a store of value.”
Explaining his bearish call, Harnett said past crypto rallies show bitcoin tends to fall roughly 80% from all-time highs. In 2018, for instance, the cryptocurrency plummeted close to $3,000 after hitting a peak of nearly $20,000 in late 2017.
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