- Bitcoin was close to an all-time high before the market collapsed.
- Now the bitcoiners are striving to make sense of the road ahead.
- Bitcoin’s appeal to institutional investors has kept some commentators optimistic, while others are more critical.
Bitcoin’s epic bull run was halted yesterday when the coin lost $ 3,000 in value in a single day.
At Bitcoin’s Bull Run, the price of Bitcoin rose from $ 12,900 to over $ 19,000 between October and November. But yesterday the price of Bitcoin fell as low as $ 16,400, down 15% in just 24 hours. But is there more pain along the way or could Bitcoin price rebound?
“The price of Bitcoin seems to have hovered around the $ 17,000 mark at the moment. The sharp decline yesterday came very quickly, but it fell just as quickly,” said Lior Messika, CEO of Eden Block VCsaid a company focused on enabling a blockchain future Decrypt.
In other words, while hopes of an all-time high were quickly dashed, it could be reason to celebrate that Bitcoin isn’t facing a price crash that is reminiscent of it January 2018.
The bull case for Bitcoin
One reason for this optimism is that the highly developed interest of investors in Bitcoin is still very young and this interest promises further growth.
“Bitcoin has a lot more room to grow as retail investor interest is still in its infancy,” said George Harrap, an early crypto entrepreneur Decryptand added that “a large part of this purchase is not being driven by small retail investors but by discerning investors with a lot of money.”
This strong investor interest will not only help Bitcoin regain a higher price, it will also continue to fuel Bitcoin’s popularity as an asset.
Tim Rainey, CFO of the mining equipment company, draws on the same logic of strong fundamentals backed by the interest of wealthy investors Greenidge generation, noted, “As institutional companies buy cryptocurrencies as a store of value or incorporate them into their products or services, the current market rally has been driven by stronger fundamentals compared to 2017.”
Mainstream adoption – a long-term goal for most Bitcoin supporters – could be on the path paved by large investors.
According to Charles Gonzalez, regional director for multi-chain platform Komodo“In 2017 we all talked about adoption, but now it seems that the adoption of bitcoin is actually happening. PayPal and other big fintechs are dipping their fingers into the BTC basket. ”
As financial giants continue to invest in Bitcoin – MicroStrategy and Square as two flagship examples – Bitcoin can take advantage of the increasing scarcity. “If more BTC is bought up, its scarcity will drive the price up. It is the complete opposite of FIAT currencies, which are currently struggling to maintain their purchasing power, ”added Gonzalez.
The bear case for Bitcoin
However, not everyone remains convinced of Bitcoin.
Peter Schiff, CEO of the investment company Euro Pacific Capital, did not react to the Bitcoin price drop.
“Remember that in any bubble, those who don’t participate always look like fools when they miss something. Only after the bubbles burst and the air comes out are the real fools exposed, ”said Schiff said on twitter.
Nouriel Roubini, Professor of Economics at the Stern School of Business at New York University, went so far as to say Bitcoin’s coefficient of inequality is “worse than North Korea, where Kim owns the most assets,” adding that “2% of whales control 98% of Bitcoin”.
The only thing Bitcoin isn’t lacking is controversy.