Bitcoin could drop 38% to $50K as bear flag forms; S&P 500 shows dot-com bubble signals, says strategist.

Gareth Soloway, chief market strategist at Verified Investing, warns that Bitcoin is forming a bear flag pattern that could lead to a 38% price drop to around $50,000. He also notes that the S&P 500 is showing warning signs similar to those seen during the dot-com bubble peak, suggesting a late-stage bull market. Soloway has pushed his recession forecast to 2027, citing strong AI spending by major tech firms as a growth driver. He remains cautious on stocks and Bitcoin, favoring natural gas as a near-term buy due to its potential breakout above $2.88. The strategist highlights structural challenges for crypto, including regulatory issues and shifting investor interest toward AI and semiconductors.