In a recent post on X, the platform formerly known as Twitter, Timothy Peterson, a prominent expert in alternative investments, made a bold prediction about the future of Bitcoin.
According to Peterson, who works at Cane Island Alternative Advisors (which is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempted or permitted), there’s a 50% probability that Bitcoin’s value will plunge below the $25,000 mark before the end of September. However, he suggests that this potential dip could be the precursor to the next significant bull run cycle.
Peterson is a highly respected figure within the financial community, particularly for his expertise in alternative investments. He has made significant contributions to the understanding of cryptocurrency investment and valuation. One of his most notable works is “Metcalfe’s Law as a Model for Bitcoin’s Value,” a research paper that was peer-reviewed and published in the journal Alternative Investment Analyst Review in 2018. This paper is one of the first to provide empirical evidence that Bitcoin’s medium- to long-term price follows Metcalfe’s law, a principle used to explain the growth of networks.
In addition to his research on Bitcoin, Peterson is the author of the book “Performance Measurement for Alternative Investments,” published in June 2015. This book serves as a valuable resource for understanding the intricacies of measuring the performance of alternative investments.
Peterson’s insights are highly sought after in the investment world. He has been invited to speak at investment conferences globally, discussing a wide range of topics, from risk management to investment manager ethics.
With over 25 years of global investment experience, Peterson’s credentials are impressive. He is a Chartered Financial Analyst (CFA), a Chartered Alternative Investment Analyst (CAIA). He holds an M.S. in Finance (with honors) and a B.A. in Economics from the University of Colorado.
According to James Butterfill, Head of Research at CoinShares, a European digital assets investment firm, for the week that ended on 4 August 2023, the total outflows from digital asset investment products amounted to $107 million, marking a continuation of the profit-taking trend that has been gathering pace in recent weeks.
Per Butterfill’s blog post, published earlier today, Bitcoin, the world’s largest cryptocurrency by market capitalization, was the primary focus of these outflows. Investors withdrew a total of $111 million from Bitcoin, marking the largest weekly outflows since March. This period was notable for the escalating regulatory scrutiny in the U.S., which has significantly influenced the cryptocurrency market dynamics.
However, in a surprising turn of events, the outflows into short Bitcoin positions, which have been consistent for 14 weeks, have come to a halt. This development could indicate a potential shift in investor sentiment, suggesting that the bearish outlook on Bitcoin might be slowing down.