In the last few months, Bitcoin showcased low volatility. In fact, at $6,200 to $6,500 range, many thought that it is because of the fact that the crypto market was maturing. Unfortunately, things weren’t what it seemed. Bitcoin this week plummeted by 30%. It went below $4,500 and is currently struggling to recover. In fact, experts think that the new resistance that Bitcoin has to beat is at $4,600. It has been the lowest price for Bitcoin since October of 2017.
Bitcoin Going to Hit $500K in The Future?
But what is next for Bitcoin? Many are asking what could be the direction of Bitcoin from here on? Should you be buying Bitcoin or should be worried?
If you are going to ask Adam Back who is the co-founder of Blocksteram, he believes that Bitcoin is set towards a meteoric rise in the next years. He mentioned on Twitter that “Personally I consider $250K-500K/BTC plausible in the years ahead”. This is quite an optimistic view of Bitcoin. This tweet was a response to Bobby Lee who is a fellow crypto enthusiast. Bobby Lee believes that Bitcoin is going to overtake gold in the next years.
But these predictions aren’t exactly isolated. You also have Dr. Saifedean Ammous saying that Bitcoin can trigger the return of the “Golden Era of capitalism”.
Ammous believes that Bitcoin is the “hardest money on earth”. What it does according to him is recreate the gold standard.
And also, you have the likes of Tom Lee. A few months back, he believed that Bitcoin could still end the year at $25K. However, based on the current difficulty in mining, he retracted his early prediction saying that Bitcoin could end the year at $15,000. He also added that “There’s a few things that could happen that could drive that”. He mentioned that “But this past few days has definitely been a negative development because we are talking about breaking to the downside of momentum”.
Should You Buy or Sell?
Should you buy or should you minimize the losses and sell your Bitcoin now? If you will look at the behavior of the whales when Bitcoin plummeted, it seemed that they even bought during the time when Bitcoin dipped. Could this b a good strategy? Do the whales believe that there will be an event that could spike the price of Bitcoin once again?
Institutional investors are believed to solve the bearish market. Many believe that once regulatory clarity has been achieved in the industry, it is possible that these institutional investors are going to enter the picture. However, the reality is that their entry is quite slow.
The Securities and Exchange Commission still hasn’t decided on the Bitcoin ETF application of Solid X and VanEck. However, prior applications have been rejected including that of the Winklevoss twins. The agency cited the possibility of price manipulation for their decision to drop the Bitcoin ETF applications.
Should you buy Bitcoin now that it is low? There are those who believe that the latest drop in its price is only a short-term thing.