Bitcoin Could Further Crash to $0 Says Peter Brandt

Renowned derivatives trader Peter Brandt still believes there is a chance the largest digital currency by trade volume can crash to $0. In a recent tweet by the trader, he maintains his 2018 predictions that the price of Bitcoin (BTC) has a 50% chance of crashing to $zero. 

Dating back to 2018 I have without apology stated that Bitcoin $BTC has a 50% chance to go to $100,000/$250,000/whatever and 50% chance to go to $Zero. This I still believe, but it means that #BTC represents a highly asymmetrical reward-to-risk trade pic.twitter.com/Iop7HIMkE3

— Peter Brandt (@PeterLBrandt) October 2, 2022

Brandt also believes there is a 50% chance the King coin could go on a bullish run that would see its price reach as much as $250,000, he says that BTC has an asymmetrical reward-to-risk trade.

The price of Bitcoin is currently over $19,000, down over $40,000, a far cry from its all-time high of over $68,000 back in November 2021. It has hovered higher and lower at different periods without maintaining a sustainable momentum.

As a result of this volatility, the Bitcoin Fear and Greed Index – a statistic that measures general attitude by assessing volatility, surveys, and commentary dropped into the “extreme fear” situation back in June. The metric shows that this is the lowest possible position since the COVID-19 crash.

If Brandt’s prediction is anything to go by, it means things could still get a lot worse.

Brandt, a commodities trader with over 45 years of experience has authored several books on understanding chart patterns. He also owns Factor Service – a firm that focuses on research and trading for forex, futures, and commodities including Bitcoin and crypto.

Meanwhile, a recent poll by Brandt suggests that BTC could further decline to $12,000 before its next bull market. A price drop to $12,000 would spell disaster for many investors, especially for first-timers who joined the train after the boom. This will result in a significant drop in investors’ portfolios.

Bitcoin crash: opportunity to buy the dip

When the market experiences such significant price volatility, analysts start coming up with forecasts about what will happen next. Due to the nascent nature of the space, price speculations are mostly informed speculations.

However several Bitcoin evangelists have always seized this period to stack up their Bitcoin holdings. One amongst other believers is MicroStrategy. The firm recently added an additional 301 BTC at an average price of $19,851. This acquisition brings its total pot holding to 130,000 units.