The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
Amid persistent selling pressure in the cryptocurrency market, an early Bitcoin miner forecast that the token could drop an additional 30% to $44,000 by year-end. The miner pointed to Strategy's (MSTR) adjusted net asset value multiple (mNAV) falling to 0.72, a level that historically has preceded market bottoms but this time signals more downside before a recovery. The prediction was made in an interview with CoinDesk.
According to market data, Bitcoin was last near $34,980 in mid-May, while Strategy shares closed at $94.13 on June 24. The forecast comes as mixed Canadian economic data and uncertainty over the Federal Reserve's rate path fuel volatility in risk assets. The miner noted that an mNAV of 0.72 has often marked cycle lows, but Bitcoin could take six more months after that signal to find a true bottom.
Sign in to access this content
Sign InBitcoin's last available close on May 15 was $34,980, roughly 20% above the predicted target level. Strategy's stock is trading below its 50-day moving average, with a recent high of $102.97. With no major crypto-specific catalysts on the near-term economic calendar, upcoming Fed speeches and inflation data are likely to be the key drivers for Bitcoin price action in the coming months.