Bitcoin in 2017 was able to hit its all-time high at near $20,000. Considering the fact that it started around $1,000 that year, it was a volatile year for Bitcoin. And it was part of the reason why many decided to invest in Bitcoin. But what makes Bitcoin intriguing is the fact that it is now becoming stable. In fact, there are those like Mike Novogratz who think that Bitcoin has already bottomed. And now, Bitcoin shows less volatility than the likes of Netflix and Amazon shares. This was according to Bloomberg data.
There could be many reasons for this. It might be because people are holding on to Bitcoin waiting for another bull run. It can also be a scenario wherein the market is actually maturing because of the regulatory changes.
Are We Entering Recession Soon?
According to Timothy Tam who is the co-founder and the CEO of crypto research company CoinFi, he also explained that the impressive performance of tech stocks in the last several years is the reason for the selloffs.
And also, you have JPMorgan saying that there is a 60% chance that the US could be entering recession by 2020. Could this mean that people are now investing in Bitcoin to prepare for the hard times ahead?
It’s no secret that cryptocurrencies become more popular in an unstable economy. You have the likes of Venezuela that is suffering from hyperinflation. With a projected inflation rate that could reach one million percent, businesses have resorted to cryptocurrencies such as Dash. You also have a growing number of Bitcoin miners in Venezuela.
Can Bitcoin Have Another Bull Run?
Next, you can’t remove the fact that many are holding on to their Bitcoin because they are preparing for another bull run. For instance, you have the institutional investors now at play. You have the likes of Bakkt that could easily attract institutional investors. Also, you have Fidelity that even decided to come up with a new company that is dedicated to cryptocurrencies.
Now, if you are going to listen to Bitcoin experts, they differ mostly in their prediction. Tom Lee believes that there is a chance that Bitcoin could still reach $25,000 by the end of the year. On the other hand, you have the likes of Danny Scott who is the co-founder of crypto exchange CoinCenter saying that there is a chance that Bitcoin could still reach $15,000 this year. According to him, “We are seeing a number of big companies beginning to buy bitcoin in bulk and we are seeing few people willing to sell”. He also added that Bitcoin has been holding its price very well around $6,000 for four or five months now”.
He says that these are just some factors that can add to the “increase and interest of the cryptocurrency”. Could he actually be right in his prediction?
Bitcoin is slowly becoming stable, but it is still too early to say that this is already the newest trend in the market. It could be one of those moments wherein people are just waiting for their next move.