According to Miller Tabak strategist Matt Maley, in the new year, we will see a significant drop in the value of bitcoin.
From the current values, the largest cryptocurrency may fall in price by 25-30%, the expert said on the air of the CNBC channel. However, in the long term, BTC will retain its status as a reliable and promising investment.
The digital currency made a historic breakthrough last week. For the first time in three years, the coin soared above $ 20,000 and did not stop there.
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On the night of Monday, December 21, Bitcoin is trading at $ 23,700. BTC capitalization is approaching $ 441 billion. Matt Maley believes that the market is "overheating" and a pullback is inevitable.
He stressed that BTC had experienced ten falls of 20-30% since 2016. Seven times the coin fell in price by 30-40%. Four times, bitcoin fell in price by 48% or more. Investors should remember that they are dealing with a highly volatile instrument.
The strategist also added: "People need to be careful when we enter the new year. I love bitcoin, but I think it will be a much larger sale than the 10-15% we saw recently. I expect a 25-30% drop."