As Bitcoin Bleeds Below $30K, Economist Roubini Says Retail Suckers Are In The Red, 'Going Much Lower'

As Bitcoin Bleeds Below $30K, Economist Roubini Says Retail Suckers Are In The Red, ‘Going Much Lower’

20 July 2021

in XLM

Reading Time: 5 mins read

The price of bitcoin fell below $30,000 for the first time in four weeks, losing 5 percent of its value in a week and breaking below a trading range that could set up a steeper price plunge.

For bitcoin bears like New York University economics Professor Nouriel Roubini, it was an “I-told-you-so” moment.

“Bitcoin price is now below 30K. A critical level – meaning the majority of retail suckers, who entered into the market after March 2021, are in the red. Fundamentally it should go much lower” Roubini tweeted.

Bitcoin price is now below 30K. A critical level – meaning the majority of retail suckers, who entered into the market after March 2021, are in the red. Fundamentally it should go much lower. Only issue: will Tether pump and pump & dump schemes now prop it up as in past episodes?

— Nouriel Roubini (@Nouriel) July 20, 2021

The CEO of New York macroeconomic consultancy Roubini Macro Associates, Roubini warned in 2006 of the credit and housing market bubble. Now he’s focused on crypto and blockchain. He predicted that bitcoin would never be used as a means of payment for goods and services. “This reliance on different tokens is effectively a return to barter,” he wrote in the Feb. 10 Financial Times column. “The Flintstones had a more sophisticated monetary system based on a benchmark: the cartoon cavemen used shells.”

When the price of bitcoin crashed by about 50 percent in May after reaching an all-time high in April, researchers at Vanda said, “(The) crypto bubble has started to unravel and data from different exchanges suggest that retail investors are capitulating.”

A Twitter follower reminded Roubini that he’s been saying for years that bitcoin is a “gigantic speculative bubble.” For example, Roubini said so in November 2017 when bitcoin was trading at $7,143.47. The price of bitcoin has gone up nine times in value since then, reaching an all-time high of close to $64,000 in April 2021. “Right on cue. Keep trying,” @PlebChumpIV tweeted.

Bitcoin’s current price movement resembles a descending triangle suggesting “bearish patterns that indicate distribution” or selling of an asset, Forbes reported. “The descending triangle is a bearish formation that usually forms during a downtrend as a continuation pattern,” according to StockCharts.com.

“Descending triangles are a very popular chart pattern among traders because it clearly shows that the demand for an asset, derivative or commodity is weakening,” Investopedia reported. “When the price breaks below the lower support, it is a clear indication that downside momentum is likely to continue or become even stronger.”

MicroStrategy CEO Michael Saylor began stockpiling bitcoin in August 2020 as a hedge against a devaluing dollar when stock in his Virginia-based enterprise software company was barely trading at $135. The MSTR price took off, hitting a peak of $1,272.94 per share on Feb. 9, before plummeting. MSTR was trading at $495.16 as of this writing. Saylor is the biggest bitcoin whale, having purchased 90,859 bitcoins at about $24,063 each for a total of $2.186 billion, according to Securities and Exchange Commission filings.

“Michael Saylor needs to get ready. These pumpers out here loved the low regulation- market manipulation in crypto on the way up, but they will hate it on the way down” The Moguldom Nation founder Jamarlin Martin tweeted.