Bitcoin is the front runner of all cryptocurrencies and it usually takes some beating. That beating, however, has been under intense scrutiny over the past week, where Bitcoin prices have shown volatility unlike its stature. After moving upto $7,389 earlier in the week on Monday, it left the psychological $7k mark and started to dive back. So much so that it sits currently at $6,450, having fallen more than 15% in the space of 48 hours.
At this point, bitcoin is down more than 66% from its peak of roughly $19,800 reached in December 2017. So, is there ever a good time to buy Bitcoin, if its going to succumb so bad at any given part of the year? And more importantly, is now a good time to buy BTC?
Analysts offer measured analysis in this respect, emphasizing that there are both bear and bull cases for digital assets. In case of Bitcoin, its volatile nature makes it incredibly difficult to forecast what its price will do.
Mati Greenspan, senior market analyst for social trading platform eToro notes:
The digital currency goes through very distinct boom and bust cycles where it’s quite normal to see massive surges and sizable retracements.
Because of these fluctuations, “it’s obviously hard to predict short term price moves” emphasized Jacob Eliosoff, a cryptocurrency fund manager.
The bear case is very much under the microscope with the current market behavior and many experts can’t help but sit on the fence for now.
I see no reason Bitcoin’s price couldn’t keep dropping or stagnating for another year or two. It did so from December 2013 to mid 2016.
Other factors that combine to make it a difficult time for BTC is the constant ETF rejection by the SEC for Bitcoin, which might be changing soon, according to renowned crypto enthusiast David Gokhshtein who was talking to BlockPublisher about the importance of getting and ETF approved.
We might get an ETF passed this year. Elad Roisman, who’s been named the new SEC commissioner, is pro-crypto and might want to make a name for himself. What better way then getting a BTC ETF passed?
While if we see the bull case, there have been several suggestions backing Bitcoin to stay crucial to mainstream digital currency appreciation.
David was more optimistic than others.
— David Gokhshtein (@davidgokhshtein) September 1, 2018
Speaking of optimism, Fundstrat’s founder Thomas Lee has gone big with his end of year prediction, much alike to that from 2017.
Lee reported certainty to “fair value over $20,000, roughly $22,000.” But he added, “We still think bitcoin can reach $25,000 by the end of the year or something like that.”
If we expand the time frame we use to measure bitcoin’s growth, “we will see a very attractive bullish trend.
said Charles Thorngren, CEO of Noble Alternative Investments.
All in all, it can be safely said that going forward, bitcoin prices have significant upside potential. There is plenty of growth to come and its criminal to ignore how the new phase of BTC and the advent of other cryptocurrencies has made the long term investor to to stake more claim and benefit.
Surely, the current debacle is just “a drop in the bucket” and there are “tons of waterfalls to come!”