Clem Chambers, CEO of online blockchain, has predicted that Bitcoin would crash within the next few months if the Fed raises interest rates and the FTX problem remains unresolved.
In a December 10 interview with Kitco News’ David Lin, Chambers pointed out that if the Fed wants to stop inflation, it would have to keep raising the rates until something breaks. Chambers believes there will be a crypto market crash if something happens.
The record-breaking 9.1% inflation rate in June 2022 was reached, but it has fallen to 7.7% since October.
Chambers predicts more storms ahead
The CEO believes that although there has been a substantial decline in the stock and cryptocurrency market value this year, it is not the end.
“Everyone remembered the big drop in 2008, but there was a bear market in 2007, which was an oncoming storm,” he said. “I think what we’re in now is potentially an oncoming storm.”
Chambers also advised that investors focus on cash to protect against stock market declines. “I’d prefer to have my money in Benjamins than in Facebooks,” he added.
This is in contrast to crypto’s common belief that Bitcoin can be used as a hedge against inflation. Chambers stated that he will save money until the market hits a bottom, then he will invest in bargain assets.
He advised investors to invest in high-risk businesses. “Snap a little bit of money off your pile and put it to one side and [invest in] high-risk stuff.”
Bitcoin could crash to $8k
Chambers said that FTX could collapse and Bitcoin could crash to $8,000. Chambers said that FTX collapse could lead to Bitcoin crashing to $8,000. speaking In a December 5 interview, Daniela Cambone from Stansberry Research.
He believes that the Bitcoin price is yet to reflect the full impact of the FTX crash. He predicts that Bitcoin could fall to $7,000. If the contagion spreads completely and affects multiple exchanges it will.
He also criticized centralized exchanges saying, “The whole point about crypto is it was decentralized. Exchanges are not exchanges at all, they’re banks where you deposit your money.”
He believes there will be a turnaround in 2024. It will take 18 months for the market’s recovery to stabilize.
Disclaimer
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