Bitcoin Price Will Recover Just Like Internet Stocks did After the Dot-Com Crash like in Crypto Gambling
Bitcoin is currently in danger of slipping below $6,000, and many traders fear that the top-ranked cryptocurrency may test $5,000 or even $4,000 given the lackluster sentiment that is prevalent in the market. However, some cryptocurrency enthusiasts believe this isn’t the end and that the temporary price pains will soon give way to another boom.
Bitcoin Akin to Internet Stocks
Speaking to CNBC, Meltem Demirors of CoinShares compared Bitcoin to the internet stocks that captured the imagination of many in the late 90s and early 2000s. According to Demirors, if indeed the BTC bubble has burst, then real growth can begin to occur in the market.
Commenting on the state of the market, the CoinShares Chief Strategy Officer said:
New technologies that shift the paradigm take a long time to really understand. The narrative around bitcoin is still really hard to grasp. Really the only metric we have for most cryptocurrencies is the price, and price is such an imperfect metric. What does actual utilization look like? That’s really the struggle for crypto right now.
Demirors expects a situation where projects begin to build real utility on top of the cryptocurrency framework. By so doing, Bitcoin and other cryptocurrencies can start to regain their actual value.
Cryptocurrency Market Lacks Momentum
At press time, BTC has declined even further, holding slightly above the $6,000 price mark. The top-ranked cryptocurrency has slipped by more than six percent in the last 24 hours as it looks in danger of falling below $6,000.
The narrative is that if a price bounce does not occur soon, BTC will most likely test $5,000. At that point, experts like Bitmex’s Arthur Hayes believe that the price will bounce to a new all-time high of $50,000 by year’s end.
In the interim, the cryptocurrency market is experiencing a severe momentum dearth. The emergence of many positive developments in the last few months has done nothing to turn the tide of the year-long price decline. The total market capitalization has fallen below $200 billion and is currently a little above $192 million.
What do you reckon is the next step for the cryptocurrency market? Keep the conversation going in the comment section below.
We’ll Recover Just Like The Past, says veteran BTC Analyst Willy Woo
Willy Woo, a veteran digital currency analyst with a strong focus on Bitcoin (BTC), has correctly predicted BTC trends on two occasions as highlighted by Crypto ICO Report.
The first time he did so, was back in late May when he had doubts that BTC would hold its levels above $7,000. Mr. Woo would then predict a decline to levels of $5,500 – $5,700 before the end of June. Sure enough, we touched $5,800 on June 29th. His first prediction was as follows:
I think we are gonna go to $5500-5700 next, I can’t see $7000 holding. Most likely we’ll balance a bit Crypto Gambling, then we’ll slide through. Long time-frames here, looking into June for rough timing of this to play out at a best guess.
The second time was when he predicted on the 1st of August that Bitcoin would flash dump then moon. His full prediction was as follows:
Interesting to see most think BTC will moon. I think BTC will flash dump, then moon afterwards, just like with Gold in WFC 2008. Flight to safety: everything else sells off to USD, then used to unwind leveraged positions, then afterwards havens like Gold and BTC have a bull run.
‘Flash Dump and Moon’ was taken out of context
Willy Woo has since stated that his predictions of a ‘flash dump then moon’ were taken out of context, but the accuracy of his words were stunning. In a tweet explaining how it was never intended to be a prediction, Mr. Woo stated that:
I never predicted a flash dump. It was a discussion on price movements in the context of a hypothetical banking crisis similar to WFC 2008.
We’ll recover, just like the past
As part of his response to the ‘Flash Dump then moon’ discussion, Willy Woo also stated that the current bear market might not be as huge or historic as everybody thinks. He went on to elaborate it in the following way:
Nah. This bear market has strong fundamentals. We’ll recover just like the past. It’s never been stronger on the long view. The fact that the media and big institutional players are talking it down is amazing. BTC used to be laughed at.
It is 2014 all over again for BTC
Bitcoin (BTC) experienced a similar decline back in early 2014. The decline was due to the Mt.Gox saga that transpired from late December 2013, to around March 2014. Back then, BTC fell 82.3% in a period of 21 months up until August 2015. Returning to current events, BTC has fallen 71% since its peak in December 2017.
When the bottom of the decline was reached back in August 2015, BTC would then continue to gain in value, from $203, for 28 months till its recent peak of $20,000 witnessed in December last year. This was a magnificent run that was 9,800% in gains in that time period.
In conclusion, the current BTC and total crypto market decline is normal for it has been witnessed before in the past. What remains to be seen, if we have reached the bottom of the decline in preparation of an upward trend for the next several months.