Crypto analyst Nicholas Merten has raised concerns about a looming market correction in the cryptocurrency market, predicting a substantial shrinkage of $440 billion in its total market capitalization.
Merten projects a potential plunge of over 43% for Bitcoin, with the market stabilizing around the $650 billion cap and Bitcoin finding support between $15,000 and $16,000. He attributes the anticipated downturn to the Federal Reserve’s hawkish approach, which is reducing liquidity and negatively impacting the performance of stocks like Microsoft and Apple.
Merten questions whether increased uncertainty and volatility will prompt people to rush towards Bitcoin, noting that the cryptocurrency’s prosperity is typically associated with periods of monetary expansion rather than contractions.
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