Bitcoin Breaks $88,000: SwanDesk CEO Expects Return Below $10,000

The cryptocurrency market is under pressure again. Bitcoin (BTC) has lost 2.75% in the past 24 hours, breaking through $88,000, bringing its weekly losses to over 13%. Jacob King, CEO of analytics platform SwanDesk, believes this is just the beginning and predicts a pullback to $10,000.

Why are we still falling?

The Kobeissi Letter's experts believe the reason lies in just one headline: an announcement from the US Department of Labor. At 11:20 AM ET, the agency announced that unemployment data for November and October would not be released until December 16.

The Reason for the Market Fall. The Kobeissi Letter.

“By the time of this announcement, the S&P 500 had already lost 70 points from its peak reached an hour earlier. However, within 40 minutes of the announcement, the index had plunged another 120 points,” analysts say.

According to their analysis, the market reacted immediately to this shift.

“It has become clear that the Federal Reserve is effectively entering the interest rate decision cycle amid a blackout on key economic data. Markets react extremely negatively to information asymmetry when the full picture is missing before important policy decisions,” they added.

Related: Bitcoin will be stuck between $60,000 and $80,000 if the Fed doesn't cut rates — CryptoQuant

However, analysts don't believe a single announcement was enough to wipe out nearly $2 trillion in a matter of minutes. They believe the Labor Department's announcement rather served as a mood-altering “switch,” even though investors are already on edge.

“When the market plummets, many panic and rush to the exits, thinking the bubble is bursting. The same mechanism works in reverse. When stocks rise sharply, the rally accelerates as capital returns to artificial intelligence (AI) stocks,” analysts noted, citing Nvidia's third-quarter earnings report.

The Kobeissi Letter believes that sentiment is now more polarized than ever.

On the topic: AI development and the US shutdown are not related to the fall of Bitcoin, analysts say.

What's wrong with your mood?

According to Santiment, Bitcoin's new six-month bottom at $86,700 is expected to trigger a strong reaction from the crowd within a day.

Retailers are unsure where Bitcoin will go next, despite the collapse. Source: Santiment.

“The current social media landscape shows a 'mixed picture,' ranging from optimism among those willing to buy on the dip to readiness for the 'end of the world.' There's practically no middle ground,” Santiment observes.

Analysts also note that ideally, there should be multiple retail price predictions below $70,000. This, they believe, would signal that the bottom has finally been reached. Historically, prices always move in the opposite direction from what the majority predicts.

Related: Bitcoin's bullish cycle may soon end — CryptoQuant

Bitcoin at $10,000

Amid a general decline, SwanDesk's CEO revealed the profit he made from shorting the first cryptocurrency in the $100,000–$120,000 range.

“The critics have fallen silent because my deal is generating huge profits, while they're all on the brink of bankruptcy. What I love about investing is that time always dots the i's,” he said.

King also added that the current bear market is still in its early stages.

“I'm absolutely confident we'll be below $10,000 again. Yes, you heard that right,” he concluded.

On the topic: Binance co-founder Changpeng Zhao called for preparation for new “dives”

This article does not contain investment advice or recommendations. Every investment and trading decision involves risk, and readers should conduct their own research before making decisions.