Bitcoin has underperformed in recent weeks after hitting an all-time high just over a month ago.
The leading cryptocurrency has been in a bearish trend in recent weeks. Bitcoin hit a new all-time high of $69,000 in November. However, since then it has lost more than 30% of its value and is currently trading at around $48,000 per coin.
The CEO of crypto exchange Kraken, Jesse Powell, predicted earlier this year that Bitcoin would reach the level of $ 100,000 before the end of 2021. However, Bitcoin is currently struggling below $50,000 and he has given another interview to Bloomberg to discuss his views on BTC. He told Bloomberg Technology the following:
“I think a lot of people see anything under $40,000 as a buying opportunity. I personally bought when we almost dropped to $30,000 a few months ago, and I think a lot of people are just waiting to get back in at rock bottom prices.“
The value of Bitcoin would drop by more than 50% from its all-time high if it fell below the $40,000 mark. The slump could provide an excellent buying opportunity for many investors who missed Bitcoin’s earlier rally.
Powell also stressed that it is difficult to say where the price of Bitcoin is moving from here. The Kraken CEO said that due to the uncertainty of the market, he is not trying to predict prices these days.
“It’s hard to know where it’s going. If you look at a long-term trend line of Bitcoin, it has simply been steadily rising. I always tell people, ‘If you’re thinking of buying Bitcoin, consider it an investment of more than five years.”
According to Powell, his biggest concern at the moment is the USD and the rising inflation rates in the USA. He predicted that the level of inflation would continue to rise, which would allow cryptocurrencies to receive a greater inflow of capital, as investors are looking for assets with returns that can provide excellent returns.