As Bitcoin (BTC) continues to exhibit symptoms of further decline, the continued volatility of the crypto market has prompted experts to modify their outlook on the asset’s future.
Despite the projections of certain experts that the asset would appreciate, a portion of the market anticipates that the leading cryptocurrency will maintain its negative trend.
Michael Purves, CEO of Tallbacken Capital Advisors, has expanded his pessimistic stance on Bitcoin, saying that the asset’s long-term momentum has begun to weaken, he said in an August 30 interview with Bloomberg Technology.
According to Purves, his position is not influenced by the asset’s underlying fundamentals, but the asset’s waning long-term momentum places the next Bitcoin price forecast around $15,000.
“What really made me bearish was really, again, nothing to do with a fundamentally bearish perspective or a fundamentally bull one. It was simply the fact that longer-term momentum was beginning to emerge in late January, and that the signal I was focusing on had done this three times before, and each time Bitcoin corrected between 60 and 70 percent over the following four to ten months,” said Purves.
Bitcoin’s failure to demonstrate independence from equities
Notably, the expert claimed that Bitcoin has subsequently lost its stability, particularly in comparison to stocks. He initiated the connection that formed with the sector’s introduction of institutions.
However, given the present market circumstances, Purves questioned the institutions’ ability to maintain their Bitcoin positions.
“It has a somewhat strong connection with the NASDAQ or other risk assets in general. Since it has not proved his capacity to be uncorrelated, I worry if institutions will enter,” he said.
Purves said that Bitcoin has not exhibited the potential to act as a hedge against inflation, despite the assertions of Bitcoin’s proponents that the asset would eventually become one. In this paragraph, he stated that there is an additional reason why institutions are likely to avoid the asset.