With BTC hitting $3k after the run to $20k, that was a 85% drop. An equivalent drop of 85% from $33k today would put it roughly around $5k. It's not unlikely and technically speaking it would be a double bottom since that was exactly where it dipped back in March 2020.
One thing that gets overlooked is that there is a lot of money printing. I'm not just talking about Tether.
The US Federal Reserve is printing lots of money. The Dow Jones, Nasdaq and S&P 500 are at all-time historic highs right now. Because they're propped up with all the money being printed. Bitcoin isn't rising in relation to that - it's rising because of that. Wallstreet is a much bigger player today, and these companies have the funding to buy bitcoin, because the US government is printing more money. Companies that have no business getting into bitcoin (i.e., MicroStrategy) are buying bitcoin.
If you check the graphs of interest rates with the Dow Jones, the peaks and troughs correlate with those of Bitcoin. When Bitcoin crashed in January 2018, there was a drop in the US economy as well. Bitcoin prices today move much more closely with the US economy since 2017.
Does anyone really think the US economy is going to keep growing explosively? I don't think so.
The market is full of heavy-hitters now, and I don't think they'd want weak hands to be in. Weak hands are only helpful for driving up FOMO. Soon enough we'll see a whole slew of exchange 'hacks' and bad news as the so-called reason for the next pullback. In reality the reason is because there will be less free money being printed to drive up the price. It's a cycle. Enjoy this peak while it lasts and ride out the waves to the next one.
$20k from $33k would be a 40% drop... extremely unlikely this early in the bull run.
I seriously doubt we'll ever see $20k again.
Hopefully, that would be the case. But companies are now holding more bitcoins than any individual hodlers, this could spell disaster in the market when those companies decided to dump the coins, at the same time, it will be a blessing for people like us that the price will drop which means that we could buy more bitcoin with our money.
Exactly.