Pro trader predicts ‘atrocious’ market downturn that could spill into crypto

‘Atrocious.’

A frightening word to describe a market’s future.

Not a word any investor wants to hear in the context of assets they happen to hold.

Yet it is the exact word used by InTheMoneyStocks.com Chief Market Strategist, Gareth Soloway, to explain his predictions of what awaits the stock market (and beyond) in the near future, as he sat down with David Lin in an interview for his The David Lin Report show streamed on April 18.

What’s more, Soloway believes that this ‘atrocious’ wipeout in stocks could spill over into the cryptocurrency market. As he said:

“The Federal Reserve just came out recently and said, ‘hey guys, we expect a slight recession,’ and if you’re like me and you hear the Fed saying ‘slight,’ and (…) ‘transitory’ – and we saw what happened – you have to be nervous about risk assets in the future. (…) I think the stock market’s getting ready to have a second half that is going to be atrocious, and my guess is it drags down crypto as well.”

According to Soloway, this is “one of those scenarios where they always try to sugarcoat because they don’t want to scare the markets and cause a collapse, but smart investors have to start prepping for a worse recession than what they’re saying. That’s just risk management. (…) In other words, it is probably going to be a mid-level recession.”

$30,500 for Bitcoin to rally

In terms of a bullish scenario for the flagship cryptocurrency, Bitcoin (BTC), Soloway, who is short-term bearish but long-term bullish, sees $30,500 as a “huge psychological level” and one “where it will pivot me into thinking that the low is in,” although he remains largely skeptical:

“If we successfully hold above $30,500 for multiple days, I’m really looking for five to seven days, then to me, you probably do have a low on Bitcoin in. As of now, I’m not convinced of it. I still think this is a bear market rally. I still think there are more shoes to drop in the risk asset market.” 

Meanwhile, the representative decentralized finance (DeFi) asset was at press time changing hands at the price of $29,250, down 2.16% in the last 24 hours and 3.34% across the week, although it is still clinging to the 3.77% gain on its monthly chart, as per data retrieved by Finbold on April 19.

Watch the entire video below:

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