Stifel’s Chief Equity Strategist and Managing Director Barry Bannister believe that by 2023 bitcoin could lead to a plunge in price to $10,000. When discussing bitcoin’s price with Business Insider, Bannister said that a tightening of Federal Reserve policy and reducing the balance sheet would negatively impact bitcoin’s value. Related Reading | Bitcoin Sets Stage For Reversal As Unmoved Supply Nears All-Time High The price is closely tied with the global money supply regarding bitcoin. Therefore, the strategist identified this first essential macro factor and cited that since the S&P 500 moved into the US dollar as its power base, any given Supply/Demand situation will affect BTC value. If the money supply measure known as M2 slows down, it is likely that US financial status will tighten. Stifel Managing Director, Bannister believes this would cause a crash in bitcoin prices and other speculative assets like stocks or bonds. These are also denominated through loans given by banks with an interest rate attached. Bannister pointed the Fed’s tightening could stop bitcoin’s growth as a second macro factor. In addition, the 10-year US Treasury yield has been increasing, and this will likely result in a surge. Overflow halts or slows down bitcoin transactions. Bannister said; In 2022, we see bitcoin in a broad trading range bounded by year-to-date intra-day levels with greater downside risk in 2023 <…...
