One of the main questions that crypto observers and investors have today is when will Bitcoin and the crypto market ever going to recover? Is it going to fall lower? Since Bitcoin reached its all-time high at near $20,000, it has lost around 85% since. Today, Bitcoin has floated around $3,500. What the future holds depends on who you ask.
There are those economists such as Nouriel Roubini and even the likes of Warren Buffet that think Bitcoin and the crypto market aren’t a good idea. On the other hand, you also have someone like Mike Novogratz who still believes in the crypto market despite its sharp decline.
Where Does Bitcoin Go From Here?
Where does Bitcoin go from here? It’s market wisdom that bottom eventually gives you bulls. Imagine Amazon during the dot-com bubble when it crashed and is now one of the largest tech companies in the world. Is Bitcoin going to have similar success?
For Eric Dalius who is a real estate and marketing professional turned crypto expert, he believes that a Bitcoin bull run is inevitable. It is a question of “when” and not a question of “if”.
Bitcoin Corrections Over the Years
Historically, it isn’t the first time that Bitcoin dropped significantly. In 2011, Bitcoin reached $32 only to crash all the way to $2 which is equivalent to a 94% drop in its price then. By 2013, Bitcoin spiked all the way to $260 and crashed by 75% to 65% after the Mt. Gox hacking incident. By November 2013, Bitcoin reached $1,000 for the very first time. However, it dropped all the way to $200 once again.
Is This the Bottom?
Now, is this the bottom for Bitcoin? There are experts who believe that Bitcoin is near its bottom. Dalius even believes that it is only a matter of time. However, there are those who have a different opinion. For Ken Rogoff who is a Harvard professor, he thinks that it is going to go all the way down to $100.
Rogoff said that “The right way to think about cryptocurrency coins is as lottery tickets that pay off in a dystopian future”. Rogoff even thinks that going for Bitcoin is the same idea as buying a lottery ticket.
Regulatory Clarity Can Bring in a Bull Run
Since the beginning of the year, crypto observers were looking forward to seeing regulatory clarity in the industry. It was even believed that regulatory clarity can bring in institutional investors to enter the market and bring fresh capital for cryptos. However, it seemed that the SEC still has a lot of work to do.
SEC recently took action against celebrities that promoted tokens and companies that raised funds via ICOs. Also, SEC chairman Jay Clayton even mentioned that the agency is only going to be comfortable approving a Bitcoin ETF if there are changes in the market. Previously, the agency also rejected a number of Bitcoin ETF applications on the basis of possible price manipulation. Clayton mentioned the lack of surveillance tools by crypto exchanges that makes the market prone to this problem.
Considering the current climate, do you believe that the next bull run is a matter of when?