At this point, many are now asking whether or not Bitcoin and the entire crypto market just went bust. For critics such as Nouriel Roubini, he believes that the crypto market went bust after Bitcoin dropped 80% of its value and was seen at around $3,500. However, there are still a lot of crypto enthusiasts and experts who still believe in the potential of cryptos. For Fundstrat co-founder Tom Lee, he believes that Bitcoin is not a fad.
Tom Lee has been known for his bold predictions regarding the price of Bitcoin. Earlier this year, he believed that Bitcoin is about the reach $25K. However, after recent bearish trends in the market, he adjusted his prediction to $15K which is still a bold prediction considering the current level of Bitcoin.
During the Blockshow Asia 2018, Tom Lee mentioned a number of metrics as to why he is giving wild numbers on Bitcoin and cryptocurrencies. He even starts to point out that the bearish market is just the start of a “golden age” for the crypto market.
He discussed that “We have a price correction taking place which has caused the price to fall even below its 200-day MA but if you’ve got time it will rise. It will not happen within three months, or one year, but in two to three years but this is the golden time to be in crypto. As soon as Bitcoin crosses its 200-day we know there will be a flood of money coming”.
Crypto is Here to Stay?
Tom Lee isn’t the only one in his assessment of the crypto market. If you are going to ask Ripple’s CEO Brad Garlinghouse, he compared crypto volatility to the stock market. He also praised the recent statement of NYSE’s chairman regarding cryptocurrencies.
On November 30, Jeff Sprecher who works as NYSE chairman and CEO of ICE mentioned that “cryptocurrencies are here to stay”
Brad Garlinghouse tweeted “Exciting to see more people in traditional finance would take the long view on digital assets. Just like stock market volatility, (doesn’t mean) the end of stocks, digital assets aren’t going away”.
Reasons for a Bearish Market
There are a number of reasons why we currently have a bearish market. For one, since 2018, regulatory changes are being applied in the market. And though it may have raised concerns on some investors, it is definitely shaping regulatory clarity in the industry that could potentially invite institutional investors.
In fact, recently, the US Securities and Exchange Commission has been taking out ICOs that are selling unregistered securities. There were two companies that have been fined recently. And also, celebrities such as DJ Khaled and Floyd Mayweather were also targeted by the agency.
Aside from regulatory changes, you also have to take into consideration the Bitcoin hard fork. Though things are slowly getting back to normal, the crypto market still hasn’t recovered its losses. For Bitcoin, miners decided to also turn off their devices after Bitcoin dropped below $6K.
Are we now entering the golden age of crypto? Or we haven’t even reached the bottom yet? There is even a prediction that Bitcoin could potentially reach $2,800.