Bitcoin has been underperforming in recent weeks after reaching an all-time high just over a month ago.
The leading cryptocurrency has been in a bearish trend over the past few weeks. Bitcoin reached a new all-time high of $69k in November. However, it has lost more than 30% of its value since then and is currently trading around $48k per coin.
The CEO of Kraken crypto exchange Jesse Powell predicted earlier this year that Bitcoin would reach the $100k level before the end of 2021. However, Bitcoin is currently struggling below $50k, and he has given another interview to Bloomberg to discuss his views on BTC. He told Bloomberg Technology that;
“I think a lot of people see anything under $40,000 as a buying opportunity. I was personally buying when we dipped back close to $30,000 a few months ago, and I think a lot of people are just waiting to come back in at rock bottom prices.”
Bitcoin’s value would be down by more than 50% from its all-time high if it dropped below the $40k level. The dip could represent an excellent buying opportunity for many investors who missed out on Bitcoin’s earlier rally.
Powell also stated that it is tough to know where Bitcoin’s price is heading from here. The Kraken CEO said he doesn’t try to make price predictions these days due to the uncertain nature of the market. He said;
“It’s hard to know where it goes. When you look at a long-term trendline of Bitcoin, and it’s just up consistently. I always tell people, ‘If you think about buying Bitcoin, think about it as a five-year plus investment.”
According to Powell, his major concern right now is the US Dollar and the rising inflation levels in the United States. He predicted that the inflation level would continue to rise, allowing cryptocurrencies to enjoy more capital inflow as investors look for assets with returns that can yield excellent returns.