Why Bitcoin Risks A Major Decline

Bitcoin has started the day in green and is trading well past $9.3k now. We expect further upside towards $10k as the S&P 500 (SPX) has also started the day in green ahead of the US job numbers report which will be released tomorrow. This is the day both markets have to make some gains and I think the big players in this market know it which is why they are likely to capitalize on it and we might see the price of Bitcoin pump higher today.

The long-term outlook of BTC/USD remains unchanged and we still expect a major decline. For that reason, it is unreasonable to consider long positions at this point as Bitcoin and the rest of the crypto market is long overdue for a major decline. Bitcoin’s own technicals are not the only risk factors. We could see things get really bad in the stock market and in EUR/USD for the first time in Bitcoin history. In addition to that, we have the Tether (USDT) situation which is like a ticking time bomb.

We have no reason to be complacent and to assume that the market is just going to keep on rallying and we are going to see a new all-time high anytime soon. If central banks outlaw stable coins, the miners would have no choice but to sell their Bitcoin to remain in business which could seriously hurt the market. A ban on stablecoins alone could be a disaster for the crypto market. The odds of it happening are higher now as the US is considering a digital dollar. There are too many loose ends and no responsible investor would consider cryptocurrencies a safe investment at this point in time.