Bitcoin is now below $3,500. And for many, you can’t help but ask if this is already the bottom. A few months back, Mike Novogratz thought that $6,200 to $6,500 was already the bottom for Bitcoin. Who would’ve thought that months prior from enjoying low volatility, Bitcoin would’ve been dealing with massive losses? Not only is this the lowest for the year, but it is also Bitcoin’s lowest level since September 2017.
Roubini Nouriel, who is the economist who predicted the 2008 crisis, thinks that this solidifies his point that Bitcoin is a bubble. He even said a few days ago that “crypto bubble went bust for good”. Since the time when Bitcoin was at its peak, it has lost more than 80%.
If you are going to ask Multicoin Capital co-founder Anthony Pompliano, he believes that “Bitcoin isn’t dead”. For Pompliano, the current price of Bitcoin isn’t something surprising since it is Bitcoin’s usual bear cycle that has occurred in the past. However, he thinks that investors should brace themselves since Bitcoin could slip to even $3,000.
Mati Greenspan of eToro has the same view as Pompliano. He thinks that $3,500 and $3,000 are the next critical support levels for Bitcoin.
Instead of focusing on the price, it is important to take a closer look at the fundamentals of Bitcoin. He has pointed out that Bitcoin has mirrored that of Mastercard considering the transaction volume of the cryptocurrency. Bitcoin’s transaction volume stands at $6 billion. He also mentioned that this is quite an impressive number with minimal participation of institutions.
Right now, many are still hoping that institutional investors are going to participate and improve the overall crypto market. ICE has teamed up with Microsoft to bring Bakkt that is expected to launch next month only to be delayed until January.
Also, you have the possibility that a Bitcoin ETF is going to get approved by the US Securities and Exchange Commission. This could potentially bring institutional investors to participate in the market easier. However, getting a Bitcoin ETF approved isn’t really an easy task. Cameron and Tyler Winklevoss already attempted to have their Bitcoin ETF only to be shut down by the agency twice. For the second time around, the SEC even thought that there is the possibility of price manipulation.
Recently, the SEC has been targeting ICOs that are selling unregistered securities. It already made two ICOs pay $250K in penalty. In addition to this, the crypto exchanges may also get in trouble if they listed these tokens.
A few months back, Bitcoin and Ethereum were considered by the agency as commodities. With these developments, could it be possible to weed out the things that gave the crypto market a bad reputation over the years? And also, is regulatory clarity enough to finally bring in the big players to participate in the crypto industry?
If you believe that Bitcoin is a bubble, perhaps, it is always a good idea to ask why it has been able to recover only to hit a higher level every time it does? Could it be that Bitcoin’s recovery may take some months or years but it is definitely going to happen?