A widely followed crypto strategist believes Bitcoin's (BTC) long-term upside potential is limitless, despite recent price weakness.
Pentoshi, the anonymous analyst, told his 801,000 followers on social media platform X that he is bullish on Bitcoin in the long term, but that the cryptocurrency champion may experience a significant correction before it can rise.
“For BTC, I thought I would start with what I consider to be the worst case scenario: say $48,000 to $51,000, effectively 20-25% lower.
And in this scenario, people should become more bullish the lower the price goes. [goes] Because the upside will be larger. But again, let's call this the maximum drawdown.
It's hard to imagine right now, but it's not impossible. That's where I would put my maximum allocation.”
According to Pentoshi, the current macroeconomic climate means it is only a matter of time before the Federal Reserve begins to ease monetary policy, a situation that has sparked major Bitcoin bull runs in the past.
He also noted that the launch of a Bitcoin spot market exchange-traded fund (ETF) earlier this year has encouraged more people to compete to invest in BTC, and he further predicted that other countries will follow El Salvador's lead and start accumulating Bitcoin.
“But we will soon return to a period of high volume printing, so there is unlimited room for upside.
So I see BTC as separate from the altcoin market in the sense that it will likely rise forever through ETFs, has a limited supply, and will have more people competing for it, including nation states, in the future.
In my opinion, there will be a whole other cycle for altcoins.”
The top trader concluded his outlook for Bitcoin by saying that the cryptocurrency has seen parabolic rallies in the past, even before the existence of ETFs and accumulations in countries like El Salvador.
“BTC could keep skyrocketing for months, and that was before ETFs, 401k’s and nation states came into the picture.”
At the time of writing, Bitcoin is worth $62,047.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies and digital assets. Transfers and transactions are at your own risk and you are responsible for any losses incurred. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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