"Bitcoin to Plummet to $20,000"

Photo by CNBC

[Asia Economy Reporter Yujin Cho] There is a forecast that the rapidly declining Bitcoin price could fall to the $20,000 level.

On the 8th (local time), CNBC and others cited experts saying that many Bitcoin investors have taken short positions at $30,000, and if the Bitcoin price falls below $30,000, it is expected to plummet to $20,000 in no time.

Dave Keller, a researcher at Sierra Alpha Research, stated, "If the Bitcoin price does not find support at the $30,000 level, there is a risk of collapsing to $20,000."

Carter Worth, chief strategist at Cornerstone Macro, also said, "If Bitcoin falls to $30,000, many options will switch to sell positions, causing a sell-off in the market," adding, "Bitcoin prices could slump to $20,000."

Bloomberg also reported that Bitcoin prices are approaching a dead cross, indicating that the bearish trend is unlikely to ease for the time being.

Additionally, the FBI's successful recovery of Bitcoin has fueled concerns about cryptocurrency hacking, and the IRS's request for regulatory support on cryptocurrencies has increased regulatory pressure, acting as negative factors.

IRS Commissioner Charles Rettig said at Congress that "institutional support is needed to collect information on all cryptocurrency transactions exceeding $10,000."

This is interpreted as a concern that cryptocurrency transactions of $10,000 or more are mostly not reported to the IRS, which could be exploited as a means of crime or tax evasion.