Bitcoin is holding its ground at $9,300. The currency has been sitting at this mark for several days, and while the price hasn’t necessarily dropped, it hasn’t jumped forward either.
This suggests that bitcoin is encountering newfound resistance at its present level, and perhaps $10,000 is not as close as we originally thought. Though support remains relatively firm at the current price, bitcoin could potentially experience spikes to $11,700 and even $12,000 respectively granted it is able to move above the $9,500 mark. Once this resistance is broken, we may witness bitcoin firing forward at a rapid rate.
The upside is that bitcoin has reached its highest position since mid-March, when the price jumped slightly beyond $9,700. For the most part, bitcoin is retaining its bullish bias, though analysts suggest that “reduced crypto market volatility” is keeping bitcoin locked in place for the time being.
In addition, recent comments made by billionaire Warren Buffett regarding bitcoin and cryptocurrency in general may be another potential reason behind its unwillingness to climb higher.
Buffett has never been a large advocate for bitcoin. In fact, he has been relatively critical of it, citing it as a figure of pure speculation and rejecting the notion that it could ever hold physical worth of any kind.
Buffett recently stated:
“There are two kinds of items that people buy and think they’re investing in. One really is investing and the other one (bitcoin) isn’t. If you buy something like a farm, an apartment house or an interest in a business, you can do that on a private basis, and it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything. You’re just hoping the next guy pays more. You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it; if you want to gamble, somebody else will come along and pay more money tomorrow. That’s one kind of game, but that is not investing.”
It is true that Warren Buffett and other top financial figures continue to remain skeptical of bitcoin’s prowess and advantages, but many analysts remain insistent that another bull run is right around the corner, citing the number of bitcoins already mined as a major reason.
Bitcoin’s total market cap is 21 million coins. At press time, less than four million non-extracted coins remain. The fewer coins in existence, the harder the mining process becomes. The final bitcoin is expected to be mined sometime in the year 2140 – more than 100 years from now.
It is a long time to wait, but putting this into context, we realize it has taken just over nine years to extract the original 17 million, and with this scarcity becoming a stronger reality every day, many experts believe the price of bitcoin will go up even further, as older coins become more difficult to gather. Many current bitcoin holders are expected to keep a tight grip on their coins and avoid cashing out in the hope they could potentially witness their earnings increase tenfold in the next three to five years alone.
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