Peter Brandt Predicts Bitcoin Could Drop Below $50,000 Amid Market Downturn
Veteran trader Peter Brandt has raised the possibility that Bitcoin’s price might fall below the average purchase price held by Michael Saylor’s company, Strategy. This prediction comes amid a recent BTC price crash below the $100,000 mark, alongside declines in Strategy’s market metrics.
Brandt highlighted on X (formerly Twitter) that if the recent breakdown of Bitcoin’s parabolic advance mirrors previous patterns, the downside target could be under $50,000. He questioned at what price point Strategy’s Bitcoin holdings might go underwater, suggesting that the flagship cryptocurrency could face severe tests ahead.
Currently, Strategy’s average purchase price for its Bitcoin holdings is $74,079. A drop below $50,000 would push the company’s position underwater. Despite the market dip, Strategy recently announced another purchase of 487 BTC for $49.9 million, showing continued conviction in Bitcoin.
BTC Price and Strategy’s Market Performance
Following Bitcoin’s decline below $100,000, with the current trading price around $95,000, concerns about a potential bear market have intensified. Strategy’s stock price has also taken a hit, dropping below $200 and reducing the company’s market capitalization to approximately $60 billion.
As a result, Strategy’s mNAV (market Net Asset Value) has fallen below 1. This means the company’s market cap is now below the value of its Bitcoin holdings, which stand at about $61 billion at current prices. Strategy’s stock is down over 30% year-to-date, despite reaching a high near $455 earlier this year. Over the past six months alone, the stock has declined by 47%.
Additional Market Insights and Analyst Opinions
Crypto analyst Ali Martinez echoed Brandt’s bearish outlook, predicting that Bitcoin could bottom between $38,000 and $50,000. He based this on the cryptocurrency’s typical four-year cycle and stated that BTC may already be in a bear market phase.
However, not all experts agree. CryptoQuant CEO Ki Young Ju countered the bear market narrative, emphasizing that Bitcoin is not in a bear market as long as capital continues to flow into the asset. He pointed out that inflows are ongoing and suggested that BTC’s price could rebound if major long-term holders (often referred to as “OG whales”) stop selling and if macroeconomic sentiment shifts positively.
According to CryptoQuant’s analysis, the current Bitcoin correction is mainly driven by U.S. liquidity stress, tax-driven profit-taking among long-term holders, and persistent selling pressure from American investors. This underscores that the recent downward pressure largely stems from developments within the United States.
Conclusion
Peter Brandt’s warning about a potential Bitcoin price drop below $50,000 adds to growing uncertainty in the crypto market amid notable declines in BTC and related equities like Strategy’s stock. While some analysts see this as a bear market phase, others remain cautiously optimistic, highlighting ongoing capital inflows and the possibility of a recovery.
Investors should monitor market conditions carefully and consider both technical signals and broader economic factors before making decisions.
https://bitcoinethereumnews.com/bitcoin/brandt-warns-bitcoin-could-dip-below-strategys-average-buy-price-as-mstrs-mnav-falls/
