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(Kitco News) Bitcoin is up more than 100% year-to-date and 30% in the past two weeks, rekindling bullish sentiment. Gareth Soloway, chief market strategist at InTheMoneyStocks.com and president of VerifiedInvesting.com, shows just how far this latest rally can go.
Bitcoin hit a 17-month high of over $35,000 this week amid optimism that a spot Bitcoin ETF will be approved within the next 4 months. At the time of writing, Bitcoin was trading at $33,981, down 2% on the day.
Bitcoin has risen on recent Bitcoin ETF news, but once approval is official, it could trigger a sell-off or price pause, taking some gains off the table, Soloway told Michelle Makori, lead anchor and editor-in-chief at Kitco News .
“They will probably receive approval by the end of the year or early 2024. If Bitcoin is still up here, you may not go higher,” Soloway warned. “Perhaps the approval has already been taken into account. It is very likely that this is a sale based on the news.”
At one point last week, Bitcoin rose 10% on a false report that BlackRock’s iShares Bitcoin ETF application had been approved by the Securities and Exchange Commission (SEC). There have also been several comments that a preliminary approval of the Bitcoin ETF could come as early as the end of this year.
The maximum upside potential for Bitcoin in this bull run is $47,000, according to Soloway, noting that this could be the next resistance level.
“Many of these ETF institutions have probably been accumulating their holdings over the last few months, knowing that approval will come at some point. Therefore, there may not be as many buyers for the spot ETF,” he described.
Bitcoin at $15,000?
In 2024, Soloway predicts a recession and a possible stock market sell-off of 35%. He also doesn’t discount his previous prediction that Bitcoin could fall to $15,000.
“What happens if the stock market falls 35%? Fear and panic will take over, even among Bitcoin holders. Remember, there are many people who hold Bitcoin who also have large stock portfolios. And if I’m heavily in the red, “Will I ever panic and sell everything?” That’s the concern that could put us back to $15,000 or even less,” Soloway described.
To find out what Soloway sees as the floor price for Bitcoin, Watch the video above. Soloway also gives his long-term outlook for 2026.
Rising yields and unsustainable debt trigger bank failures
Soloway’s macroeconomic outlook is bleak, with credit card debt already at an all-time high and interest rates more than doubling to 25% this year.
“The consumer is being taken advantage of, the government and our debt are in a situation where they are no longer sustainable. And then there is this push where yields rise, which will eventually lead to the collapse of the banks,” he warned.
A recession will be inevitable in the first quarter of 2024, Soloway added, because the banking sector is very risky. Many financial institutions are “essentially zombie banks” and have “dead securities on their balance sheets,” he said.
Gold is an exceptional asset
Soloway is bullish on gold, stating that a new all-time high is imminent. “It’s always about listening to the smarter money [central banks], and they are the ones who literally see the dollars and cents being printed, and they are the ones who print it. If they load the boat with gold, it probably means we have to do the same,” he said.
Soloway’s gold price forecast for 2024 is as follows: Watch the video above. He also revealed three key trade bets for next year. For more information, see the video above.
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Source : www.kitco.com