Bitcoin could plunge even further to a low of $13,000, one strategist warns

If the past bubbles are anything to go by, there is a good chance that the price will fall even further.

According to a strategist, the world's topcryptocurrencies is likely to tank as low as $13,000.

Ian Harnett, co-founder and chief investment officer of Absolute Strategy Research, told CNBC that they would still be selling these types of cryptocurrencies.

It's a play that's a lot of fun. It isn't a currency, a commodity or a store of value.

Explaining his bearish call, Harnett said that since the beginning of the year, bitcoin tends to fall from all-time highs. After hitting a peak of nearly $20,000 in late 2017, thecryptocurrencies plummeted to a low of $3,000.

Bitcoin rallied to a record high of nearly $69,000 at the height of the 2021 crypto frenzy. In 2022, it’s moved in the opposite direction.

It would take you back to $13,000 in the key support area for the token. At the height of the coin craze, it was worth nearly $69,000.

The bitcoins of this world do well in a world where there's plenty of money to be made. The markets come under extreme pressure when the central banks take away the amount of money in circulation.

As investors wrestle with the impact of higher interest rates on assets that flourished in an era of ultra-loose monetary policy, the world of cryptocurrencies is on edge.

The Federal Reserve raised its benchmark lending rate last week for the first time in two decades. The Bank of England and the Swiss National Bank followed the Fed's lead.

Digital assets have been affected by that. In the past two weeks, the value of all Cryptocurrencies plummeted. The price of the digital currency was $21,393 Tuesday, up 6 percent in the last 24 hours, but still down more than 50 percent for the year to date.

Before the Fed rate hike last week, the market was already on shaky ground because of the collapse of terraUSD and luna, two popular stable coins.

The fall in the value of a derivative token designed to be one-to-one redeemable for ether has made financial troubles at major industry players worse.