Bitcoin has stumbled over the past 24 hours, falling back below the $16,000 line. At the time of writing, the currency is selling for just over $15,800, about $500 less than where it stood in its recent prime.
Bitcoin Has Backed Off a Bit
And yet, analysts don’t seem bothered by this. In fact, they claim that the currency is likely to encounter “minimal resistance” as it continues to reach towards $20,000. This is the sentiment of industry experts such as Jason Lau, the chief operating officer for OK Coin. In a recent interview, he explained:
Bitcoin cleared $16,000 for the first time in three years, confirming the existing bullish uptrend… It’s hard to tell how the next few weeks will trade into year end, but signs are positive.
Similar verbiage was offered by Denis Vinokourov, the head of research at cryptocurrency brokerage firm Beqaunt. He claims:
Aggregate bitcoin futures open interest continues to rise and, more importantly, it is not just the unregulated venues that are seeing this growth but also [open interest] on the [Chicago Mercantile Exchange] is within touching distance of the $1 billion mark.
Many altcoins appear to be raking in the same rewards as bitcoin as of late. Following in their master’s footsteps, assets such as Litecoin and bitcoin cash have risen by anywhere between half a percent and more than four percent, while Ethereum is also up at press time. Other currencies, such as XRP, Chainlink and privacy coin Monero, have all taken minor stumbles and have fallen by anywhere between 0.15 percent and two percent.
One of the big things that could potentially be adding to bitcoin’s rising reputation is the fact that so many institutional investors have come out lately to announce that they now possess bitcoin and have added it to their portfolios. Companies like MicroStrategy, Stone Ridge and Square have all invested huge amounts in bitcoin. On top of that, they’ve been rather open about these investments, which have inspired other companies to follow suit.
Brian Kelly – the CEO and founder of BK Asset Management – says that all these companies admitting to owning bitcoin is giving people newfound hope in the asset, which is likely inspiring a whole new string of investments.
Is This Only Temporary?
But the fact remains that bitcoin has dropped a bit over the past two days. Now back in the $15,000 range, one has to wonder if this is going to last or if this is just a small step back for what has been one of the largest bull runs ever experienced by the world’s largest cryptocurrency by market cap.
For the most part, the currency still seems to be on a serious roll, and we have seen warnings that consolidations will happen before BTC rises back up, so perhaps this is just a small chink in the chain that requires a fix.