Healthy price corrections are usually part of bull runs in the market. With such a drop underway, Alex Mashinsky, CEO of Celsius, thinks there could be $ 16,000 in the cards.
“I have predicted that Bitcoin and many altcoins will hit new all-time highs in 2021 and beyond,” Mashinsky told Cointelegraph. “Still, we’ll see several corrections like what’s going on today that will allow savvy investors to build these assets at a discount.”
After Bitcoin broke the 2017 record in December 2020, the asset continued parabolically, finding it worth more than double its one-time high of $ 19,892 less than two months later.
Bitcoin hit nearly $ 42,000 on January 8 before embarking on its recent decline, to hold valued at nearly $ 32,700 at time of publication. From its all-time high near $ 42,000 to its recent low, Bitcoin has already corrected in price around 28%.
“I see Bitcoin prices fall even further than 25%. Sooner or later, the bears will build up enough pressure to see a correction. Overall, I see the potential for bitcoin prices to drop all the way back to $ 16,000 by the end of the first quarter. “
The price of Bitcoin has rose at a lightning-fast speed the past weeks. While bull markets often show declines in price, what are some signs that may occur once this price correction is over? “Regardless of this decline and there are many more to come, we will keep saying the same thing since 2017,” said Mashinsky, adding:
“There is nothing better than to HODL your BTC and earn a return on it, because very few investments have delivered Bitcoin’s returns over 1, 3 and 5 years. This process will flush the weak hands and transfer the baton with all their BTC from the short-term speculators to the long-term institutions and HODLers. “
Bitcoin’s bull run too gets in line with a number of other economic factors, including money printing and possible inflation.