Though cryptocurrencies are down in the past days, Bitcoin now makes up 50% of the entire crypto market capitalization. Many are already asking where exactly is the market going now? Many are still waiting for the next bull run to happen. If you will ask the likes of Tom Lee, he still thinks that nothing is actually wrong with Bitcoin. There was even a prediction could reach $4,000 in the coming weeks.
According to Mike McGlone who works as Bloomberg Intelligence analyst, he says that “It may not subside until revisiting good support near $4,000—last year’s mean”.
$18 Billion Wipeout
In the past 24 hours, the crypto industry lost $18 billion. Cryptocurrencies dropped from 4% to 13%. For instance, Ethereum lost 13% in one day becoming one of the worst performing crypto including NEO. There were also a good number of Ethereum based tokens that lost a significant amount of ranging from 14% to 18%. Tokens such as Theta Token, Pundi X, Aelf, DigixDAO, WanChain, and VeChain lost a significant amount in just one day.
What to Do Next?
One of the main reasons why the bearish price of Bitcoin along with other altcoins is due to the Securities and Exchange Commission’s (SEC) decision to prolong their decision whether to approve or reject Bitcoin ETF applications. Many are seeing the possibility of Bitcoin price skyrocketing once the proposal gets through.
What’s the next step at this point now that there is even a possibility that Bitcoin is about to hit its worst this year? But of course, you have to also take a closer look at the other developments in the niche. For instance, you have the infrastructure ready for institutional investors to enter the market. And also, though regulations don’t always favor Bitcoin and other cryptocurrencies, clarity is slowly coming to the market.
Also, you have the fact that Facebook is also looking to enter the crypto market. Earlier this year, the social media platform along with Google decided to ban crypto related ads. But now, Facebook has a blockchain division not to mention the company has been rumored to be working with Stellar.
If you are going to ask the opinion of Pantera Capital CEO Dan Morehead, he thinks that investors are actually overreacting regarding the rejection of the Bitcoin ETF application by the Winklevoss twins and postponing the proposal until September.
Is he actually right that this is expected from the SEC? Keep in mind that a gold-backed ETF only happened in 2003. It only means that the US SEC is actually just cautious when it comes to dealing with ETFs.
A Good Time to Buy?
Could this actually be the best time to invest in Bitcoin. According to Aleh Tsyvinski who recently made a research along with Yukun Liu in order to formulate predictors for crypto returns, he mentioned that “all things can happen”. Tsyvinski also mentioned that “Maybe the statistical patterns that we find are going to completely change. Maybe tomorrow Bitcoin is going to be prohibited by regulators, maybe it’s going to be completely hacked, there are many things one would take into account”. In short, their research really can’t predict fully what is going to happen next.