After quite some time being highly correlated to the stock market, and the Nasdaq in particular, the price of Bitcoin has finally decoupled. As stocks have been recovering, the crypto markets continue on their downtrend, with Bitcoin having fallen to $16,700.

Many traders are wondering if there are any silver linings to this decoupling: for quite some time speculators have believed that the Bitcoin price ought to decouple from the stock market, and perhaps even ought to start dramatically outperforming the stock market once more.

However, it seems that decoupling to the downside isn’t something replete with positives: as the stock market recovers with other risk on assets, the crypto markets continue on their decline.

Bitcoin price continues to fall

The Bitcoin price has been deeply impacted by the fall of the FTX exchange, and has fallen by almost 20% over the course of the last week.

It looks increasingly unlikely that the bull market will resume any time soon, and far more probable that the bear market will be extended further.

The hash rate has been growing significantly recently, and this has made the mining industry extremely competitive, with many large scale miners such as Core Scientific likely to go bankrupt soon.

bitcoin price prediction

$11k and pray

There were many who believed that the Bitcoin price had already bottomed out at $17.5k, and when the price had recovered to $21k a lot of speculators believed that the bear market had run its course.

However, Richard Heart has been saying the entire time that it is extremely unlikely that the price doesn’t continue on its downward trend, and that the most likely scenario is that the Bitcoin price falls to at least $11k, before potentially falling even further.

The reason behind this logic is that such a decline would mirror previous price declines – Bitcoin has never had a bear market where the price only falls by 60-70%.

The Grayscale discount continues

Many believe that the recent price action presents a generational buying opportunity, with only two years until the next halvening, at which point Bitcoin will become increasingly scarce.

For institutional investors who wish to acquire exposure to Bitcoin even more cheaply, there is the opportunity to buy Bitcoin at a 41% discount through the Grayscale Bitcoin Trust.

This is exactly what the legendary investor Cathie Wood has decided to do via Ark Invest.

Throughout the entirety of the Bitcoin bull market, there was a significant premium for GBTC over BTC itself, whereas the bear market has completely reversed this trend – the GBTC premium or discount to NAV has been a highly reliable indicator of the future direction of the Bitcoin price, and despite Wood’s accumulation, it doesn’t appear as though the bear market is to be over any time soon.

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