The year 2024 gave Bitcoin a new price status, propelling it to thrive and reach new highs as the token progressed ahead to sit at $107K. However, market volatility and changing geopolitical narratives continue to batter Bitcoin, which has caused its price momentum to slow down significantly. In this wake, a new price revelation is haunting users, predicting Bitcoin’s drop to $20K.
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Will Bitcoin Drop To $20K?
Bitcoin has slowed down significantly, showing signs of price lethargy. The token is currently sitting at $96K, down from its earlier price ATH of $108K. BTC has noted a downfall of 8% in the last week. The token’s plummeting pace is worrying investors, adding more to their woes. While some have maintained a bullish price stance on Bitcoin, a new pattern indicates that Bitcoin could drop as low as $20K.
Per a recent post uploaded by the Kobeissi Letter, Bitcoin prices have long followed the global money supply trends, with a 10-week lag.
As global money supply stats grew bigger, hitting $108 trillion, Bitcoin’s price mirrored the magnificent change, claiming a new high of $108K. But over the last 2 months, the global money stats have fumbled, plummeting by $4.1 trillion to $104 trillion. The lowest since August 2024.
Is Bitcoin overdue for a correction?
In the past, #Bitcoin prices have followed global money supply with ~10 week lag.
As global money supply hit a new record of $108.5 trillion in October, Bitcoin prices reached an all-time high of $108,000.
Over the last 2 months, however,… pic.twitter.com/i80ym4Wu7F
— The Kobeissi Letter (@KobeissiLetter) December 21, 2024
If the drop continues to gain momentum, Bitcoin can plummet dramatically, falling to sit as low as $20,000.
“Is Bitcoin overdue for a correction? In the past, #Bitcoin prices have followed global money supply with a ~10-week lag. As global money supply hit a new record of $108.5 trillion in October, Bitcoin prices reached an all-time high of $108,000. Over the last 2 months, however, money supply has dropped by $4.1 trillion, to $104.4 trillion, the lowest since August. If the relationship still holds, this suggests that Bitcoin prices could fall as much as $20,000 over the next few weeks.Bitcoin’s red-hot run may take a pause.”
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Should Investors Worry: What Is Bitcoin’s Future Path?
While such patterns are indicative of Bitcoin hitting new low, technical platforms like CoinCodex, predict a different story. Per CC, BTC may continue its upward trend to sit at a new price of $111K.
“According to our current BTC price prediction, the price of BTC is predicted to rise by 17.43% and reach $ 111,910 by January 21, 2025. Per our technical indicators, the current sentiment is bearish while the Fear & Greed Index is showing 73 (greed). BTC recorded 15/30 (50%) green days with 3.13% price volatility over the last 30 days. Based on the BTC forecast, it’s now a bad time to buy BTC.”
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