Bitcoin prices have slipped over the last few days and the biggest question in the market is what will happen to the cryptocurrency: Will a significant recovery come or will BTC continue to drop? Economist Harry Dent’s bearish stance in the short term might point to an attractive future.
Bitcoin Prices’ Dynamic
Harry Dent foresaw a great fall in the markets —including that of cryptocurrencies— during 2022. In an interview with Kitco, Dent fixed his stance regarding the immediate future of the markets saying the recent margin of recovery will not be sustained over time.
Dent said: “This is not a correction. This is the beginning of a prolonged bear market.”
Among his predictions, the founder of HS Dent Publishing anticipated that July might be the turning point. By then, he expects bitcoin prices to trade at lower points than those seen so far.
That protracted bear market affecting stocks, gold, and cryptocurrencies would end around 2024, according to his predictions. Dent considers that economies are weak and there is an “everything bubble” from which bitcoin cannot escape.
In the short term, he sees bitcoin falling to between $3,000 and $7,000 in the next two years. These levels, it should be noted, would represent a negative milestone in the history of cryptocurrencies.
Bitcoin prices hitting such lows would mean the cryptocurrency can fall back to levels from the previous market cycle —something that has not happened until now. Dent also said he would not buy bitcoin despite being touted as the “opportunity of a lifetime.”
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After 2024, according to Dent's analysis, the new global financial push would begin, in which bitcoin and assets such as gold would come out winners.
For him, Bitcoin could become the financial standard, instead of gold; basically, because “we are now in a digital economy” in which bitcoin represents “the digitization of all financial assets.”
In the future, with bitcoin becoming “the standard replacing gold in that role,” Dent believes the cryptocurrency could be worth between half a million and a million dollars as soon as 2037 when he envisions that the great global run will reach its peak.
"That would be the investment of a life, but I wouldn't touch it." The investor assured that he "would not touch it" even if it fell to 50% or 60% of current levels, without giving further explanations.