By now, you know already that Bitcoin has dropped significantly over the last week. Bitcoin was steady at around $6,200to $6,500 over the last months but after the Bitcoin Cash hard fork, things went south to the point where Bitcoin was trading below $3,500.
Now, many are worried whether or not this is the end for cryptos. Bitcoin has lost 80% of its value since its all-time high at near $20,000. The likes of Nouriel Roubini even mentioned that “crypto bubble went bust for good”. Prior to this, last month, he mentioned that crypto is a “stinking cesspool”. Roubini is the NYU economist who successfully predicted the 2008 financial crisis.
The question remains if Bitcoin will be able to bounce back before the year ends? Or is it simply going to bottom even more? If you will look at altcoins, Bitcoin isn’t the only one seeing red. Ethereum and Ripple were also stumbling.
Only a Matter of Time Before Recovery?
If you are going to ask Samuel Leach who is the founder of Yield Coin, he gave his bullish prediction on Bitcoin saying that it is “only a matter of time” before it goes bullish once again. He mentioned that “The bitcoin downturn that we’ve seen over the past 48 hours is most likely as a result of market fragmentation, with Bitcoin Cash—the fourth largest currency in terms of market capitalization—experiencing a hard fork earlier this month”. He also mentioned that “While the split didn’t directly impact Bitcoin Cash’s predecessor, it comes as little surprise that secondary fragmentation has impacted the wider cryptocurrency community”.
Not The First Time It Happened
This isn’t the first time that Bitcoin experienced a massive correction in the last decade. There were instances when Bitcoin dropped by large amount only to have a bull run again. He said that “While there has been some minor panic in the industry, this has largely been in relation to smaller alt coins for whom the outlook is slightly less certain”. He also added that “As prices for major cryptocurrencies, including Bitcoin and Etehreum, continue on a downward trend, more and more buyers are lining up to buy leading tokens at cheaper prices”.
There have been reports that institutional investors are buying Bitcoin at a low. Leach believes that “With Bitcoin sitting at $3,000 the potential returns are substantial so there’s no doubt that prices will begin to rise rapidly soon”.
Technical analyst Peter Brandt agrees that there will be a bull run soon. He interpreted the chart saying that “BTC is entering the stage of its life cycle when stale and weak money capitulates and strong hands accumulate strategically”.
You also just can’t blame Bitcoin Cash hard fork for the crypto bearish trend these days. You also have the dwindling hash rate of Bitcoin. Many are predicting the future price of the cryptocurrency based on the hash rate. Bitcoin’s hash rate gives an idea of what the operating expenses and capital costs miners are willing to pay in order to get rewarded with Bitcoin.
But other than the price, Dr. Saifedean Ammous thinks that Bitcoin’s dwindling hash rate can create another problem which means that Bitcoin is “becoming cheaper to attack and less secure”. Can Bitcoin recover soon? Or are we seeing a few more months of a bearish market?