Bitcoin 'Risk-Reward' Setup Similar to COVID: Analyst
Bitcoin may have substantial upside, as its current price appears misaligned with the macroeconomic outlook, according to Bitwise’s André Dragosch. He notes current conditions resemble the asymmetric risk-reward seen during the COVID-19 market crash and argues that Bitcoin is already pricing in a recessionary environment and has absorbed much negative economic news. Despite this, Bitcoin’s price has recently underperformed expectations, dropping from new all-time highs, experiencing a sharp selloff after a $19 billion liquidation, and falling below key psychological levels before rebounding. Dragosch believes global growth is set to improve, fueled by previous monetary stimulus, which could drive Bitcoin higher through 2026. Other analysts, such as Alessio Rastani and Tom Lee, also remain optimistic, citing historical patterns of post-drop rallies and projecting a return to or surpassing of the $100,000 mark by year’s end.
