At the time of writing, the leading cryptocurrency of the world bitcoin is floating around the price of $3,550 (as per www.coinmarketcap.com). In the past month, major drops have been seen in the price of this asset. A lot of people have lost a lot of money owing to these drops. But where are we headed from here on?
Different experts are speculating different outcomes. Just recently, when bitcoin was floating around the mark of $4K, BlockPublisher got in touch with a crypto enthusiast Eric Thies in order to get his opinions regarding the matter. Talking about where the asset might head, Eric had stated:
I’m expecting $2900 at the minimum. I’m prepared for $1800, and I’ve considered below $1000 just for peace of mind if it happens.
This opinion shared by Eric does not come off as very welcoming for the proponents of this asset as it has already faced a lot of criticism from the people who believe it is just a bubble that will burst as the time passes.
The kind of volatility that is being shown right now by bitcoin is not something that is new. In the past, we have seen the asset make sudden price jumps and drops. Last year’s bull run is in front of everyone. Last December, the asset almost touched the mark of $20,000 as it gained much attention from the financial world. This year, things did not seem to be that good. The asset faced major drops over the past months and the market saw a major bear run resulting in the loss of a large amount of money.
In October, bitcoin showed some signs of improved volatility as it floated around in the $6,000s. For days, no major spikes or drops were seen as much praise was being gathered by the asset. But soon after showing this mature behavior, bitcoin took the downward road again.
The much-expected exchange-traded fund (ETF) linked to the asset also did not see an approval this year from the regulatory body in charge, the United States Securities and Exchange Commission (SEC). One of the issues pointed out by the SEC regarding the approval also included this issue of volatility. Extreme shifts in the prices are often seen in this market. If bitcoin is to grow, mature and gain credibility in the eyes of the general public and the investor community, it needs to solve this issue of volatility as soon as possible.
Now, it remains to be seen whether it goes further down from here on or recovers, nobody can tell for sure. It’s all speculation at the moment.