Veteran trader Peter Brandt cites that ongoing market volatility could plunge Bitcoin into the $70,000 price range.
Key Highlights
- Bitcoin price is portraying bearish consolidation as the crypto market suffers a selloff.
- Market trader Peter Brandt acknowledges the $70,000 floor price possible.
- Market analysts hold divergent opinions on BTC price action in the short term.
The Bitcoin price has slipped below $83,5000, raising concerns about a further downtrend. In his recent X post, Veteran trader Peter Brandt weighs into the situation, noting that a tumble to $70,000 is reasonable. The expectation of a BTC slump to $70,000 emerges as investors wake to the stubbornly high inflation report following the US personal consumption expenditures (PCE) index report by the Federal Reserve (Fed).
Bitcoin Under Pressure From Inflation Report
The Fed release shows that annual inflation hit 2.8% in February, per its PCE index. The metric offers comprehensive tracking, better than the consumer price index (CPI), by excluding price movement within the volatile energy and food categories.
Most economists called for 2.7% PCE inflation per the median forecasts by FactSet, lower than the 2.8% anticipated by the Fed per Chairman Jerome Powell’s pronouncement last week. The core PCE inflation is far above the Fed’s 2% target, a threshold the central bank has not met since February 2021.
The PCE index rose 0.3% in the Jan-Feb spell, while the core measure is 0.4% up when adjusted for the seasonality. The latter exceeds the 0.3% month-over-month increase anticipated by the economists.
Current market data shows digital assets responded negatively to the inflation uptick, down 3.1% to $2.78 trillion. Bitcoin is no exception to market dip, with the pioneering crypto tumbling to $81,769.99 floor price in the past 24 hours. According to CoinGecko, Bitcoin has surrendered recent gains, leaving its current price 23.58% below its all-time high of $108,786. Similarly, the slump has extended to the BTC trading activity down 43.20% to $16.714 billion, suggesting a recent drop in market activity.
The decline in BTC trading volume and price shows distress to the uncertain macroeconomic context, with sellers dominating the market. This negative price movement has suppressed concerns about a further drop for Bitcoin, possibly retesting the $70,000 floor price. Though identified as a Bitcoin bull, market analyst Peter Brandt endorses this forecast as a reasonable expectation.
Bitcoin Crash or New Peak?
Brandt responded to the forecast by market analyst HTL-NL via an X post, indicating BTC could surrender more gains, possibly tumbling to $76,700 or even $70,000. The trader considers such figures reasonable, signaling his agreement with the assessment.
Brandt’s projection aligns with the forecast by former crypto exchange BitMex chief Arthur Hayes. The crypto entrepreneur acknowledged the uncertainty experienced and indicated that Bitcoin was destined to bottom around $70,000. The price level would mark a 36% correction from the all-time high (ATH) set in January at $108,786, noting such corrections are ‘very normal’ occurrences during the bull cycle.
Traders are holding back on their investment plans owing to the worldwide uncertainty that has engulfed the market. While experts considered lower inflation would prompt the Fed to ease interest rates, the metric shows inflation stays high. This could convince the Fed to keep the current rates stray or hike them, thereby imposing additional pressure on Bitcoin and other risk assets.
Crypto analyst Javon Marks considers Peter Brandt’s forecast to be another speculation of BTC volatility. Although he admits a BTC drop to $70,000 could occur, Bitcoin is likely to stage a sideways movement preceding a big jump. The analyst reflected on historical trends in an X post to suggest that BTC could replicate its leap from $19,000 to $67,543 to hit the $116,600 – $118,800 price range.