Carol Alexander, a cryptocurrency expert and professor at the University of Sussex, remains bullish on Bitcoin’s direction and predicts that BTC will reach $100,000.
Speaking about recent market dynamics, Alexander noted that Bitcoin’s occasional sharp price fluctuations are typical and do not diminish its long-term potential.
“I’m not sure right now because it was down 5% yesterday, which is not unusual for Bitcoin,” Alexander said, explaining that Bitcoin’s highly leveraged trading environment often leads to significant price swings.
“There were a lot of long positions liquidated yesterday,” he noted. Liquidations occur when leveraged positions are automatically closed when their margins reach zero, which leads to a cascading effect. “On some unregulated exchanges, you can have leverage as high as a hundred times. So, as those positions are liquidated, you see these cascading liquidations,” he added.
Despite this, Alexander pointed out that the leverage ratio remained high on both the long and short sides of the market, indicating that trader activity continued.
Alexander pointed to $92,000 as a critical support level for Bitcoin, warning that the cryptocurrency could delay its march to $100,000 if it falls below that threshold. However, he suggested that the turning point could line up with a major political or market event.
“If it falls below that, then I think maybe we should wait until the inauguration,” he said, referring to January 20. Alexander suggested that “the powers that be” could time Bitcoin to hit $100,000 by then.
*This is not investment advice.
