Analyst Shares His Favorite 2 Altcoins and Bitcoin Prediction!
A senior analyst at Token Metrics shares two of his favorite altcoin projects that could rise if the crypto market weakens and explains what to do if Bitcoin (BTC) drops to $20,000 in a ‘worst case scenario’.
Analyst believes the downturn will be a buying opportunity in the long run
Bitcoin is currently changing hands for about $39,874. This is almost certainly between the highest level of 2022 ($47,938) and the lowest level of the year ($33,503). With bitcoin prices falling dramatically last year, no one knows which of these levels the world’s largest digital asset will re-test first. This includes proven crypto forecasters such as Bill Noble, a senior market analyst at Token Metrics.
Bitcoin embarks on a rollercoaster ride in 2022
After carefully analyzing crypto market charts and catalysts, Bill Noble says Bitcoin is in the middle of the current bullish and bearish price targets of $56,000 and $28,000, respectively.
In the upward scenario, Bitcoin is removing concerns about rising interest rates, which have broken investor sentiment and climbed to $56,000 before the end of the year. Then, at some point in 2023, the token finally goes beyond the much-anticipated milestone of $100,000.
“When the global financial tummy tummy pain ends, I think crypto will emerge in 2023 as the ultimate financial investment for the future,” he says. In the less rosy scenario, Nobel says the war in Ukraine, 41 years of high inflation and a policy failure by central banks put cryptocurrencies under even more pressure.
Ultimately, however, Noble believes that even this stressful outcome will be a buying opportunity in the long run. According to the analyst, crypto can fall, and then there are a lot of people there waiting to buy it.
How to prepare for the ‘worst case scenario’ for Bitcoin?
He said $28,000 for Bitcoin was a ‘more likely level’ to hit rock bottom if there was a downturn, but added that the ‘worst case scenario’ for the token was $20,000. In the meantime, let’s remember that Bitcoin has not fallen below $30,000 since January 2, 2021, according to CoinMarketCap.
Bill Noble, citing 1987, says this scenario will only happen if history repeats itself and a bond market divestment shifts to the stock market. According to the analyst, the promising situation for crypto is that crypto only trades back and forth in a range, as stocks did during the last bond market collapse in 1994. The worst-case scenario for crypto, he says, is an increase in bond yields, in line with what happened in 1987, just before stocks crashed. Noble continues:
Here’s the balancing act: If stocks collapse, we believe crypto will clearly be pulled down. But crypto will come back much faster.
While falling stocks have caused Bitcoin to return to the levels last seen in 2020, Noble says he is confident it will not be the start of a terrible ‘crypto winter’. The situation for digital assets is much clearer than in past declines, he said, referring to an April 11 survey that showed financial advisers believed 6% of customers’ money should be in crypto.
Bill Noble thinks that if there’s a crypto downturn, it’s likely to happen in the summer. Having money ready to distribute may be wise, he admits, but the unpredictability of inflation and how the Fed will respond to it complicates the picture.
Top 2 altcoins to consider
Just as the fall in stocks will bring Bitcoin down, any weakness in leading crypto will have a tremendous impact on altcoin projects or smaller cryptocurrencies.
In September, Noble expressed his love for three lesser-known tokens: AirSwap (AST), Eden (EDEN) and Immutable X (IMX). Noble says these altcoin projects are ‘day’, but have since faded. Now, he advises crypto traders to be selective and manage their risks with altcoin projects. The two altcoins that Bill Noble is currently on the rise are Near Protocol (NEAR) and Cosmos (ATOM).
“Sometimes in crypto, when crypto is sideways or a little down, I call it a single-token market phenomenon: where the market falls, there is a token that can rise. First we saw it with Avalanche (AVAX), then we saw it with Terra (LUNA). We saw this with THORChain (RUNE), a DeFi protocol. And NEAR could be next.”
“I would almost call Cosmos a value investment,” according to the analyst, which said it would not deliver extraordinarily upward returns, but wise compared to the dollar-cost average because of its ability to connect other Blockchains and its relationship with Blockchains such as LUNA.
When investing in Cosmos, he says, a large number of airdrops will be purchased. As we mentioned in news, cosmos stakers receive airdrops from tokens of new protocols every time they connect to a protocol or help connect another protocol to it.