Bitcoin (BTC) is likely to fall below $60,000 this year, says Lekker Capital founder

According to CoinDesk, a cryptocurrency-focused media outlet, on the 31st (local time), Quinn Thompson, founder of the cryptocurrency hedge fund Lekker Capital, claimed that Bitcoin (BTC) is likely to fall below $60,000 this year.

Cryptocurrency hedge fund Lekker Capital founder Quinn Thompson believes Bitcoin (BTC) is likely to fall below $60,000 this year, reports CoinDesk on Monday.

This is about a 50% drop compared to $109,000 two months ago.

"I don't think the decline will happen quickly," Thompson analyzed.

"It will proceed unbearably slowly. The current market is in a situation of great volatility, such as large-scale liquidations and crashes. Because of this, the decline will be a very painful and shocking event for people."

Furthermore, he explained that investors will suffer in the expectation that this might be the bottom.

"The policies of the Trump administration, such as the D.O.G.E workforce reduction, tariffs, the Fed's limited response, and new immigration policies, will impact the U.S. economy over the next 6 to 9 months. Stocks, Bitcoin, etc., are facing these headwinds. It will be difficult for the cryptocurrency industry to achieve good results this year."

The founder also noted that cryptocurrency prices have been highly correlated with the stock market in recent times.

"There is a strong correlation between the S&P 500 and cryptocurrencies such as Bitcoin and Ethereum (ETH). When the stock market rises, cryptocurrencies also tend to follow suit, and vice versa."

However, he pointed out that the correlation between Bitcoin and the stock market is not necessarily a bad thing.

"If we look at the historical context, there have been periods of high correlation and low correlation. Ultimately, it depends on the market conditions at the time."

In other news, a recent report by the Bank for International Settlements (BIS) revealed that the correlation between Bitcoin and major equities has decreased in recent months.

According to the report, the correlation coefficient between Bitcoin and the S&P 500 fell from 0.88 in December 2022 to 0.5 in May 2023.

This decrease in correlation can be attributed to the divergent price movements observed in recent months, with Bitcoin experiencing a steeper decline compared to major equities.

The report also highlighted the role of macroeconomic factors, such as inflation and interest rates, in influencing the correlation between Bitcoin and equities.

During periods of high inflation and low interest rates, as seen in 2021 and early 2022, Bitcoin and equities exhibited a strong positive correlation.

However, as inflation began to moderate and central banks started raising interest rates, the correlation between Bitcoin and equities diminished.

The report concluded that while the correlation between Bitcoin and equities has decreased, it remains significant and suggests a common sensitivity to macroeconomic factors.

This finding is particularly noteworthy given the common perception of Bitcoin as a hedge against inflation and equities as a risk-on asset class.

The report's analysis provides valuable insights into the dynamic interplay between cryptocurrency prices, equity markets, and macroeconomic variables. It serves as a reminder of the interconnected nature of financial markets and the importance of considering broader economic trends when evaluating cryptocurrency investments.input:

According to cryptocurrency-focused media outlet CCN, on the 31st (local time), an American cryptocurrency hedge fund founder is claiming that Bitcoin (BTC) is likely to fall below $60,000 this year.

This is about a 50% drop compared to $109,000 two months ago.

Quinn Thompson, founder of the cryptocurrency hedge fund Lekker Capital, analyzed, "I don't think the decline will happen quickly."

He added, "It will proceed unbearably slowly. The current market is in a situation of great volatility, such as large-scale liquidations and crashes. Because of this, the decline will be a very painful and shocking event for people."

Furthermore, he explained, "Investors will suffer in the expectation that this might be the bottom. The policies of the Trump administration, such as the D.O.G.E workforce reduction, tariffs, the Fed's limited response, and new immigration policies, will impact the U.S. economy over the next 6 to 9 months. Stocks, Bitcoin, etc., are facing these headwinds. It will be difficult for the cryptocurrency industry to achieve good results this year."

The founder also noted that cryptocurrency prices have been highly correlated with the stock market in recent times.

"There is a strong correlation between the S&P 500 and cryptocurrencies such as Bitcoin and Ethereum (ETH). When the stock market rises, cryptocurrencies also tend to follow suit, and vice versa."

However, he pointed out that the correlation between Bitcoin and the stock market is not necessarily a bad thing.

"If we look at the historical context, there have been periods of high correlation and low correlation. Ultimately, it depends on the market conditions at the time."output:

According to a recent report by