Bitcoin (BTC) bears are busy ruling out any potential for the cryptocurrency as a dying fad. Are the negative voices wrong on dismissing the cryptocurrency opportunity?
The skepticism makes sense, boiling down to a titanic 65% price plunge against this past December’s record high. To put it bluntly, as of the time of writing, the price of Bitcoin is now under $6,200, from the peak price that leapt close to $18,000 on December 15.
Using the screener platform at Coinwatch.com, we got up to date on the latest market stats in the crypto-verse. Let’s take a closer glimpse.
Today, Bitcoin’s market cap has tumbled down to a market cap of $106.12 billion. In the massacre of Tuesday’s cryptocurrency crash, the total market cap of cryptocurrencies has sunk to $245,509,627,834. A cyber hack cleaned billions in valuation off the table for the digital currency and its other peers once South Korea’s Coinrail revealed it was a victim of cybertheft on Monday. The thieves ran away with roughly 30% of Coinrail’s virtual currencies. It’s another week of whiplash for crypto enthusiasts.
Flash back to December 22 and the thud that could be heard around Wall Street by Bitcoin shedding a third of its value overnight, sinking under $14,000. Bitcoin’s latest bottom price point hovered dangerously close to $5,900 on June 24. For context, in October 2017, $6,180 was once considered a new price milestone for Bitcoin. Present-day, it is a far different story.
A current price under $7,000 has the Street comparing the rise and fall of cryptomania to the feverish dot com crash of 2000. Just as the dotcom bust left investors shaken, even Warren Buffett, one of the greatest investor successes in history made it clear he is less than impressed: “Bitcoin is an asset that creates nothing.”
Though the biggest cryptocurrency in the globe has been put through the wringer of a volatile economic backdrop, some experts say not to run for the hills just yet. There could be new reason to hold out hope for Bitcoin to not only regain its rocket momentum, but to eclipse its former glory.
Fin-tech research firm Autonomous NEXT forecasts that the market pressures impacting Bitcoin come back to initial coin offerings (ICOs), a means of boosting capital for cryptocurrencies tainted by the backlash of scams and securities law violations.
On July 2, the firm wrote, “ICOs were the reason the crypto prices shot to the moon last year, and they are also (part of) the reason why we are now seeing a prolonged weak market.” This theory indicates companies that raised funds for ICO projects have turned to ditching the ether raised to pay off their workforces. This did not stop the market from an upturn, where ether saw a nearly 4% jump to $471 and bitcoin cash rose 6.5% to $786.
eToro’s senior market analyst Mati Greenspan likewise believes cryptocurrency charts point to a slew of “positive progressions” in store for crypto’s leading coin. It is certainly encouraging to see “the break above the downward channel that we’ve been tracking,” notes Greenspan, but the question of course will be of sustainability. Otherwise, this “breakout” may not be “real.” In a week where crypto has been attacked with another wild swing down, some investors will be left wondering just how long the next positive upturn will last.
Hundreds by hundreds, the crypto universe is witnessing the end of many currencies. In the wake of these smoked out coins, those who had invested gobs of money have been left with burning pockets and failed get-rich schemes.
That said, Google’s co-founder Sergey Brin, who has earned a whopping $52 billion to his name emerged from a recent blockchain conference as a “blockchain evangelist” in today’s “technological renaissance.” Brin even wonders if Google is too late to this blockchain “golden ticket” opportunity, adding, “We probably already failed to be on the bleeding edge, I’ll be honest, [… but] I see the future as taking these kind of research-y, kind of out there ideas and making them real – and Google X is kind of like that.” Notably, Google X is the company’s special division, the division behind innovative products like Waymo and Project Loon.
On a bullish note, Julian Hosp, co-founder of crypto wallet and card start-up TenX projects Bitcoin could spiral up to a tall $60,000 despite its weakness this year. At Hong Kong’s RISE tech event, Hosp assured CNBC’s Akiko Fujita: “I’m still quite confident.” All the crypto coin needs is some sort of “massive positive event” to start rising again in the market.
Even the co-founder and CEO of bitcoin exchange BitMEX Arthur Hayes is not deterred by the very volatility that has spurred swings in price. In fact, Hayes makes a bold prediction: crypto enthusiasts can count on Bitcoin’s price reaching roughly $50,000 by the close of 2018. After all, "something that goes up to [approximately] $20,000 in one year can have a correction," asserted Hayes on CNBC’s “Fast Money.”
Regarding Bitcoin’s massive bouts of upheaval, Hayes said he would not be surprised for a bottom to fall in a range of even $3,000 to $5,000. However, make no mistake: “[…] we’re one positive regulatory decision away, many an ETF approved by the SEC, to climbing through $20,000 and even to $50,000 by the end of the year."
Crypto bulls are no stranger to these rollercoaster shake-ups. These popped balloons of momentum are precisely what make turnarounds that much more valuable to investors willing to take the bet. Should Bitcoin make the kind of rebound Hayes is projecting, bulls may find the risk translates to a fortune at the end of a precarious road.
Knowledge is invaluable to a savvy investor. Track cryptocurrency’s leading trends and developments using the screener platform on Coinwatch.com.
Author: Julie Lamb