Could Bitcoin (BTC) really crash like it did in 2022? According to Katalin Tischhauser, Head of Investment Research at crypto bank Sygnum, a full-blown BTC crash is unlikely without another major black swan event like the Terra collapse or FTX bankruptcy. Here’s what you need to know.
Will Bitcoin Form a Double-Top Pattern?
Tischhauser suggests BTC could form a double-top pattern above $100,000, a technical indicator that often precedes a sharp decline. If this plays out, BTC might plummet by 75% from its peak to around $27,000. However, she emphasizes that such a crash would require an unforeseen disaster—similar to Terra’s implosion or FTX’s collapse.
Why Institutional Inflows Are Driving BTC’s Rally
The recent Bitcoin rally isn’t just retail hype. Tischhauser attributes it to institutional inflows, which are absorbing liquidity and reducing BTC’s available supply. This could sustain the bullish trend, pushing prices higher.
- Institutional demand is increasing.
- Supply squeeze could intensify.
- Past crashes required extreme triggers.
What Could Trigger a Bitcoin Crash?
While a double-top pattern is possible, Tischhauser believes a true BTC crash would need a catastrophic event—something on the scale of Terra’s algorithmic stablecoin failure or FTX’s sudden bankruptcy. Without such a catalyst, Bitcoin may avoid a severe downturn.
Conclusion: Is Bitcoin Safe From a Major Crash?
For now, Bitcoin appears resilient. Institutional interest is strong, and without another Terra or FTX-level disaster, a steep crash seems unlikely. However, traders should stay vigilant for unexpected shocks.
Frequently Asked Questions (FAQs)
1. What is a double-top pattern in Bitcoin?
A double-top is a bearish chart pattern where the price hits a high twice before reversing downward.
2. How did Terra and FTX affect Bitcoin?
Both events caused massive sell-offs due to loss of trust and liquidity crises in crypto markets.
3. Are institutions really buying Bitcoin?
Yes, institutional investors are increasingly entering the market, driving demand.
4. Could Bitcoin drop to $27,000?
Only if a major crash occurs, similar to past black swan events.
