Commodity trader Peter Brandt continues to stick to his long-time prediction that the Bitcoin price could collapse to zero. The chartist still believes there is a 50% chance of such a catastrophic scenario unfolding.
Bitcoin Price Can Still Go to Zero, Peter Brandt Says
At the same time, Brandt claims that there is an equal chance of the largest cryptocurrency surging to as high as $250,000, noting that the cryptocurrency has an “asymmetrical reward-to-risk trade.” The trader predicted that zero could be Bitcoin’s ultimate bottom after the cryptocurrency experienced a massive pandemic-induced crash in March 2020. However, Bitcoin kicked off another bull run just months after that, initially peaking at $69,000.
Even though the largest cryptocurrency has been around for quite a while, there’s still no shortage of naysayers convinced that it would eventually fade into oblivion. Berkshire Hathaway Vice Chairman Charlie Munger, the right-hand man of legendary investor Warren Buffett, recently claimed that Bitcoin was “very likely” to go to zero, adding that the cryptocurrency was “stupid” and “evil.”
While such a scenario is highly unlikely, Bitcoin could technically crash to zero. In 2018, Yale University economists estimated that the probability of the largest cryptocurrency collapsing to zero within a single day due to some extreme black swan event was 0.4%.
Speaking of more realistic bearish targets, Brandt recently suggested that the $8,000 level could end up being the bottom of the ongoing price correction. The cryptocurrency trades at $19,197 at press time, down 72.20% from its record high.