The correction that brought the bitcoin (BTC) rate back below USD 50,000 may have made many traders nervous. For example, they wonder whether this was the end of the bull market or not. However, head of Digital Asset Strategy at Fundstrat, a consultancy, argues that the recent pullback may actually be healthy for the further upward movement.
David Grider said this to Yahoo Finance yesterday. According to him, we currently do not see a 2017-like market top and that the price seems to be calming down for a while:
“We don’t necessarily see this as something that will necessarily take us to a 2017-type market top, but rather as something where the market needs to have a healthy cool-off period before the market can move on,”
Grider states that Fundstrat therefore sticks to its price prediction for bitcoin. They predict that bitcoin could be worth $ 100,000 by the end of the year. This is roughly in line with expectations based on the stock-to-flow (S2FX) model of the Dutch analyst PlanB.
Grider further substantiates his statement that the current correction is a healthy pullback by noting that volatility is relatively low. This would be a sign that there is no talk of capital fleeing:
“I think that’s a strong indication that big segments of the market are really just seeing capital moving, and we’re not necessarily seeing a massive flight of capital.”