KEY POINTS

  • Bitcoin might fall below $20k: Gareth Soloway
  • The top coin is hovering around $42k
  • Gold can outperform the S&P 500 and Bitcoin this year, Soloway said

The new year could not thwart the tumble in Bitcoin prices. While some bulls continue to trust the capabilities of the world's most sought-after coin to reach the $100k mark this year, one analyst has predicted a major downfall for BTC.

"Bitcoin for me, has a nasty head-and-shoulders pattern on it. Believe or not, in early 2022, or early 2023, you could see a move down sub-$20,000 in Bitcoin," Gareth Soloway, president and CFO of InTheMoneyStocks.com told Yahoo Finance Live.

"Bitcoin and cryptocurrency are going to see their dot-com moment over the next year or two," he said.

Early morning Friday, Bitcoin fell below the $42k mark as the top coin lost all support following the release of the recent Federal Reserve minutes.

The Federal Reserve's plan to likely raise interest rates this year "is going to take a lot of money and liquidity out of the system," Soloway said.

The analyst highlighted another pattern. Even when Dow and S&P 500 (^GSPC) saw a Santa Claus rally coming into the new year, Bitcoin continued to tumble through December. The top coin is now more than 35% off its all-time high levels from November.

He predicts that gold can outperform the S&P 500 and Bitcoin this year. Although in the long term, he still has faith in Bitcoin.

"You look 5 years out, Bitcoin is easily at $100,000, maybe even $250,000. But for me, I'm looking at the leverage in the system including the stock market," said Soloway.

The FBI was able to obtain the private key to access the bitcoin bought with the stolen funds, the Justice Department said
The FBI was able to obtain the private key to access the bitcoin bought with the stolen funds, the Justice Department said AFP / PIERRE TEYSSOT
MEET IBT NEWS FROM BELOW CHANNELS

© Copyright IBTimes 2022. All rights reserved.