Things aren’t looking good for Bitcoin. Since the unprecedented bull-run in 2017, Bitcoin has continuously crashed since it has reached its peak in mid-December 2017 at near $20K. Now, Bitcoin is trading around $3,500. And it seems that for experts, it can get worse from here. Many are wondering where the bottom really is.
Last year, many crypto observers were looking for the chance to increase adoption in the industry. Many were hoping that increased adoption could get the help of institutional investors. Unfortunately, though institutional investors showed interest last year, regulatory problems were still present and it subsequently stopped crypto adoption.
Rapid Fall to $2,000?
Though Bitcoin was able to recover from below $3,500 to above in the last 24 hours after Fidelity has announced that it is going to launch Bitcoin custody by the end 2019’s first quarter, it seems that the worst is expected on Bitcoin these days.
Despite the recovery in the last 24 hours, it seems that Bitcoin is still vulnerable. According to DonAlt who is a crypto technical analyst, “Sitting in the last buy zone before new lows. Cut some of my buys due to the breach of the top of the zone. Looking to re-add them if it is reclaimed. If green fails ($3,300) I expect a quick move into the $2000s”.
There are also other prominent figures in the crypto industry that is predicting the worst scenario. For chief executive of one blockchain company, Civic, there is a chance that from “crypto winter”, it can go towards “nuclear”. Vinny Lingham who is the CEO of Civic mentioned on his twitter that “If we break below $3,000 for Bitcoin, crypto winter will become crypto nuclear winter”. He also added that “Bitcoin bear markets don’t end when the market indicates that there is a bottom. They typically end when the market indicates that there is no bottom”.
Crypto Needs Adoption Badly
For Lingham, what’s missing is adoption. He said in an interview that “The reality is that crypto needs real adoption and use cases”. The good news is that there are cryptocurrencies such as Ripple that is starting to gain traction. It is being used by banks in order to lessen the cost of cross-border transactions. But of course, it is still not enough. Lingham mentioned that “Until we have that we’re not going to have another bubble. The speculative mania is over. People want real numbers and usage and transaction volumes”.
Is Bitcoin headed to $2,000? Will there be a chance that regulatory clarity will happen this year and get more adoption to happen? In reality, the last year wasn’t easy for a lot of crypto investors. Many lost a significant amount of money especially those who bought during the peak of Bitcoin. To give you an idea how bad the problem was, around $400 billion was wiped out from the crypto market in just a matter of 12 months.
Will there even be another bull run? Considering the slow pace of adoption and regulatory changes, there is a chance we will see Bitcoin go even lower.