Crypto Market News

06/13 15:09

Bitcoin: Trader Expects 75% Crash – Here's Why

Bitcoin: Trader Expects 75% Crash – Here's Why

Even as Bitcoin (BTC) flirts with new highs, veteran trader Peter Brandt has issued a stark warning: A 75% crash is coming.

When compared to Bitcoin’s 2022 chart, Brand’s warning comes just before important US consumer price index data, which could determine BTC’s next move.

Brand’s analysis points to a familiar pattern appearing on the leading digital asset’s technical charts, leading him to wonder if “ Bitcoin ($BTC) is following its 2022 scenario and preparing for a 75% correction? ” The chart suggests that BTC is at a critical juncture where it could either break out or crash.

Despite the recent bullish momentum that has sent Bitcoin to $110,000, data from Glassnode suggests that the derivatives market may be overheating. While interest rates remain modest, signs such as rising short liquidations and widening long premiums signal potential short-term volatility.

The immediate future depends on macroeconomic factors, in particular the upcoming US consumer price index data for May. A rise in inflation could trigger selling pressure and potentially delay interest rate cuts by the Federal Reserve.

However, the recent $1 billion surge in Tether’s USDT supply suggests otherwise, likely injecting fresh liquidity to fuel Bitcoin’s rally. The market is anxiously awaiting the release of the Consumer Price Index on Wednesday.

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