As the price of Bitcoin struggles to stay above $6000, the eyes of the cryptocurrency world remain firmly fixed on the market leader.
‘There is Nothing Preventing $2500 from Being the Bottom’
Various analysts and experts have weighed in on Bitcoin’s current woes, providing their opinions on what the future holds for the first and foremost cryptocurrency.
One such expert is Luis Carranza, the founder of London Fintech Week, who told Express.co.uk that — despite reaching yearly lows — there are still plenty of reasons to remain bullish in the long term. He stated:
Crypto is unpredictable. There are massive spikes and drops. $4500 could be the bottom, but there is nothing preventing $2500 from being the bottom. Likewise, as crypto becomes more mainstream the price tends to rise. Even if the price drops to $1000 there’s nothing preventing another surge to $14,000.
For Carranza, the cryptocurrency market’s current woes are mostly the result of necessary growing pains as the industry matures from stupid money to more intelligent money. He noted:
The challenges for 2018 all involve regulation and the market maturing; with larger sums, crypto is becoming a grown-up game.
Don’t ‘Bet Your House on This Investment’
Gavin Pannu, MSTA, Market Analyst and Trading Mentor at London Academy of Trading (LAT), agrees that regulation is ultimately the key to sparking another bull run in the broader cryptocurrency market. He stated:
Central Bankers have been quiet during the cryptocurrency bull-run, and have been doing their due diligence with research and white papers carried out by regulators and experts in the field and the market is anticipating an optimistic view from Central Banks. Regulating cryptocurrency would ease investors’ concerns.
Regarding whether or not Bitcoin is searching for a bottom — the question on everyone’s mind — Pannu is less confident, explaining:
Bitcoin volatility is now at its lowest level from a year ago, but a comparison of a bubble-like asset, which had a significant rise compared to the aftermath of a large correction, does not necessarily mean this is the bottom. Cryptocurrencies are still an emerging asset class which requires important steps to be taken for it to become mainstream, and begin the next move higher. This has become a concern for investors with the price of Bitcoin over a one month period losing 19.88 percent in value. It is important to consider investing with good risk management and, as they say, not to bet your house on this investment.
At the time of this writing, Bitcoin is currently trading at $5,955.19 — with all signs pointing to a continued downward trend.