Bitcoin has seen its harshest days recently. The world’s number one digital currency by market cap lost approximately 35 percent of its overall value and has dropped from the mid-$50,000 range, which is where it was in late April and early May, to about $36,000 per unit at press time. Many analysts and financial institutions are beginning to write the currency off as dead or dying, but according to two separate individuals, things are about to become much steadier.
Bitcoin May Be On a Stronger Path from Here
Pankaj Balani – the CEO at Delta Exchange – commented in a recent interview:
We believe that most of the leverage is out of the system now, and bitcoin should start to form a base here.
Right now, in his mind, the final week of May is going to be a critical point for the asset. While he believes the currency has already bottomed out, there is no telling for sure what the next few days hold for bitcoin, and granted it decides to fall even lower before the month is out, things could potentially get worse. However, if it decides to hold its present position, bitcoin could ultimately find itself slowly rising back to the top come June 2021 given investors regain their confidence in crypto.
David Jones – the chief market strategist at Capital.com – reiterated this sentiment and says that corrections – even ones of this magnitude – are normal for bitcoin. He does not feel people should worry too much, as bitcoin has garnered a heavy following over the past year and those involved will not allow it to plunge into oblivion. He comments:
So, has the bitcoin bubble burst? Do not bet on it. Its devoted band of followers means that the crypto granddaddy has a phoenix-like superpower to rise again.
Bitcoin has incurred the largest drop of its 12-year existence, and to an extent, it is probably safe to say that we all knew this was coming. Nothing can remain at the top forever, and bitcoin is no exception. In addition, we have seen instances like this time and time again, such as when bitcoin rose to nearly $20K in late 2017 – a record at that time – only to come crashing down just a few months later.
BTC has been on the rise over the past year. Initially trading for only $9,000 last May, it was able to add roughly $50,000 to its price about 12 months later. With such heavy momentum behind it, it could be assumed that eventually, the currency would run out of stamina and drop like it has now.
Mike Novogratz – billionaire investor and former hedge fund manager – says that bitcoin is likely to remain where it is for at least the next few weeks or months, but that eventually, the currency will regain its strength.
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