In the past month, bitcoin has seen major drops in its price. Many people have lost a large amount of money owing to these downfalls in the price of bitcoin. After enjoying stability in the $6,000 range in October, bitcoin fell down to the $4K range in the past month. It loomed around this mark for quite some time with many experts speculating different outcomes from there on.
Amidst all that chaos, BlockPublisher reached out to a well-renowned crypto analyst Eric Thies, who also goes by the name of “Eric Thies | Crypto” on Twitter. With bitcoin now looming around $3,500, Eric responded to the question previously posed by BlockPublisher regarding where bitcoin might head after revolving around the $4K mark stating:
Welp I was expecting at least one more impulse down when you sent this but that has already happened. 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 analysis made by Eric does not come off as very welcoming for the proponents of the asset bitcoin. As a result of the drops that have been seen recently, the crypto Twitter world has been thrown into a frenzy.
Proponents of the asset are coming out to calm the people down and are asking them to stay patient whereas on the other end, people who consider bitcoin a bubble that will burst with time are coming out guns blazing.
This kind of volatility associated with the asset surely makes its reputation in the eyes of the general public and the investor community less credible. Last December, bitcoin almost touched the $20,000 mark with all eyes focused on it. Now that it is at a price less than 1/4th of its peak of last year, things are not looking so good for the asset.
This kind of volatility is also one of the reasons why an exchange-traded fund (ETF) linked to bitcoin has not been approved by the regulatory body in charge the United States Securities and Exchange Commission (SEC).
If this asset is to grow and mature, it needs to solve this issue of sudden spikes and downfalls as soon as possible. But with this seemingly distant in future, let’s see how the asset behaves from here on.