Bitcoin (BTC) closed for a week at its lowest level since May, closing at $100,970. The BTC fell below $99,000 at one point due to fear caused by widening geopolitical tensions.
But even as the overall sentiment shifts from neutral to frightening, top market experts remain optimistic.
What are experts saying about Bitcoin falling below $100,000?
As reported by Beincrypto, Bitcoin fell below the $100,000 mark after Iran threatened to close the Strait of Hormuz. This shows a serious escalation of tensions following the US attack on Iran.
Instead of panic, major industry experts remained optimistic. They are confident in technical analysis and macroeconomic factors.
RealVision founder and CEO Raoul Pal shared his perspective along with a chart comparing the Global M2 Money Supply with Bitcoin prices. He argued that it was no surprise that Bitcoin would fall below $100,000. This takes into account the strong correlation with global M2 supply growth.
The chart shows that Bitcoin usually follows the growth of M2 with a delay of 12 weeks. PAL stressed that investors should not expect all short-term movements to be perfectly aligned. More importantly, the overall context.
“There’s nothing unusual here, but don’t think every wiggle will match or every timing point will be accurate, most importantly, overall contextualization.
Arthur Hayes, former CEO of Bitmex, shared a similar view. He predicted that central banks, particularly the US Federal Reserve, would soon resume aggressive money printing. In previous analysis, Hayes argued that loose monetary policy could skyrocket Bitcoin prices, potentially reaching $1 million.
“Are you hearing it? …It’s the sound of a money printer spinning to fulfill their patriotic duties. This weakness is unquestionable about the status of its safe haven,” Arthur Hayes said.
His view reinforces the belief that Bitcoin, often referred to as “digital gold,” will benefit from financial printing policies during economic and political uncertainty.
Technically, popular analyst TechDev also provided a positive outlook. He admitted that BTC could drop even further, but he is confident in his big rebounds.
“$95,000 makes structural sense. Then $170,000 is closer than you think,” TechDev says.
Additionally, figures from major industries such as Binance Founder CZ and Crypto Banter founder Ran Neuner also expressed strong confidence in Bitcoin’s recovery.
Data shows that retail sentiment is different from market movements
Experts remained optimistic amid rising political tensions, but retail sentiment was drawing another picture. According to Coinmarketcap, the fear and greedy index fell from 65 to 37 in June. This change reflects the shift from greed to fear among retail investors.
However, Santiment’s analysis suggests that Bitcoin often goes against retail investors’ sentiment. Social Volume data shows that prices have recently coincided with overly positive debates. Meanwhile, Vitcoin prices have tended to recover during periods of highly negative debate, such as the recent US-Iran conflict.
“Currently, with all the real-world concerns and uncertainties about Crypto, prices should be simple for this next week.
“Low” or “low” retail calls = price increases
Santiment analyst BrianQ wants “high” or “up” at retail stores,” says Santiment’s Analyst Brianq.
At the time of writing, Bitcoin has recovered and is trading above $101,000, adding even more weight to the forecasts shared by these experts.
Still, the next move by world leaders involved in conflict is unpredictable. These developments can change the market in ways that many investors may not expect.
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