Well-know BTC pundit, Tone Vays, predicts BTC will not tip over $10k this year.
We hate to be the bearer of bad news, but this particular price prediction looks to be a solid one. His analysis is usually spot on, and his latest forecast could be one that the majority of BTC investors will not want to hear as he cleverly puts a few spanners in the works predicting that a possible S&P 500 index 400-point crash will also affect BTC's ability to move above the $10k mark.
Tone Vays has long been what we would call in the gambling industry a ‘financial pundit’. He is well-known for his crypto and stock market predictions and has his own YouTube channel which currently has a huge following of 95.3K subscribers.
Anyone with that many subscribers is well worth listening to – especially in such a topsy-turvy market such cryptos!
Not only is Tone Vays knowledgeable giving his subscribers plenty of awesome in-depth crypto info and trends, but he also has a likeable personality. His main focus is on BTC but he often crosses the line from BTC to stocks looking for a correlation between the two which is exactly what he did in his recent YouTube video correlating BTC with the S&P 500.
To cut a long story (or video) short, Tone Vays says that we should not expect to see BTC surpass the $10k mark until after 2021, but the good news is that BTC is unlikely to fall below $6k.
That said, the crypto gods often like to prove even the most founded price predictions as wayward later down the line - in this case, we hope wayward means upwards!
How Will Tone Vays Prediction Affect BTC Stakeholders?
There are quite a few groups to consider, but many of these fall under three catergories:
- Long term investors squirrelling BTC in search of a big payday any time over the next decade will probably not be overly worried about the news
- Short term investors in the game just in case BTC suddenly hits an upwards trend could see this as a reason to exit the BTC market
- Day traders looking to capitalize on the BTC market’s ever-fluctuating prices will continue to adapt to the current conditions
For day traders looking to cash in on major price movements, Tone’s prediction is not so bad. Most traders adapt to the market’s present conditions so, in theory, it is business as usual for these guys and gals with no alarm bells ringing.
There is, however, the possibility of slower daily price movements which is where traders like to gamble – when BTC appreciates and depreciates in large percentile ranges, day traders can capitalize.
All that said, this is the world of crypto, and literally, anything could happen – there is no reason why BTC cannot shoot from $6k up to $9k in a day.
For investors, this group can be divided. Those looking for a quick return on their investment, Tone's analysis is bad news. Those magical $500k and $1 million spikes predicted for 2020 by the likes of John McAfee are not coming anytime soon – it seems the earliest we will see any movement above $10k is 2021.
On the other hand, for those happy to hold onto their current BTC balance (speaking for a large number of mBitcasino players) hanging onto your BTC while BTC tussles between the $6k and $10k mark comes with no major risk. Even if BTC does drop to $6k, it is sure to bounce to back!
Tone Vays Prediction Explained
Of course, there are those of you out there that want to know how Tone Vays came to deliver his latest 2020 price prediction which is not only interesting but also gives us another angle that goes against most other BTC forecasts predicting huge leaps above the $10k mark – something we are all hoping will come sooner rather than later!
The full Tone Vays price prediction story came to our attention after reading this article over at Cointelegraph. However, Cointelegraph does love mincing its words up on occasion, and so we want to break down their explanation into our own words, so here goes!
To begin with, it is important to understand what the S&P 500 is. It stands for Standard & Poor's 500 Index. It is is a market-capitalization-weighted index that takes into account the USA’s 500 largest PLCs deemed as a key benchmark indicator/index for the USA’s stock market. BTC is said to be 95% correlated with the S&P 500 in particular.
This is in stark contrast to the army of investors and traders who believe that BTC price movement is free of macro factors that affect stock markets.
Our friend Vays suggests that BTC is connected to the S&P 500, meaning that BTC stakeholders could be in for a bearish market over the next year. The reason for this is because the S&P 500 is set for a huge slump is due to fears of a second wave of coronavirus and heightened unemployment figures in the USA. These macroeconomic factors are sending the S&P 500 index towards what is predicted to be a 400-point slump.
Sadly, if this is true, BTC could decline in line with the S&P 500. What's more, is that there is already some correlation between the S&P 500's points drop and BTC price drops over the past few days (25 - 27 June).
Now, this doesn't mean BTC will fall off the charts and back to the $4k mark (in case you were worrying). Our fav crypto has already shown too much resilience for this to occur. What it does mean, if true, is that anyone connected to BTC will need to wait a while longer than originally expected for its price to rise above the $10k mark and head towards that magical $20k and beyond.
We can only wait in hope for what we believe to be the inevitable dizzy heights of a single BTC being worth $20k and beyond are just around the corner!
Of course, this could all be speculation, but Tone Vays, as always, makes some interesting points. We will have to keep a close eye on the market and the S&P 500 to see if Vays price predictions hold.