\u201cSomething that we need to be accountable for here is the idea that we could possibly come even lower than these levels here, down towards around $10,000. I know it sounds crazy.\u201d <\/em><\/p>\nAccording to Merten, the further decline of market liquidity due to the Federal Reserve\u2019s hawkishness and a possible recession are two of the factors that could trigger the BTC collapse.<\/p>\n
\u201cBitcoin has never been through a recession before. And the unfortunate reality here is that liquidity is relatively scarce in this market\u2026 <\/em><\/p>\nYou need to be modest in your expectations\u2026 <\/em><\/p>\nIt may be a bearish case scenario, but at the same time it is at least one that\u2019s rooted here in the fundamental reality that liquidity is drying up.\u201d <\/em><\/p>\nHe warns that the macroeconomic environment that helped Bitcoin soar to its all-time high may not be returning anytime soon.<\/p>\n
\u201cI understand Bitcoin has had phenomenal performance here over the last decade from 2010 to 2021. But essentially, that was during a period of time where it had much greater growth multiple potential, the halving event had much more of an impact, and Bitcoin had much more Fed and central bank liquidity supporting it. <\/em><\/p>\nOver the next couple of years, it may not be that we enter back into that environment, even considering the decline in demographics and changing macro factors where the Fed may need to step in sometimes. They probably are not going to step in so aggressively in order to get inflation back to a modest target and make sure that it stays there.\u201d<\/em><\/p>\nBitcoin is trading for $27,019 at time of writing, up 2.6% in the last 24 hours.<\/p>\n