It’s scary to think that bitcoin could get any worse at this point, but that’s what’s happening. There’s no beating around the bush; the world’s number one cryptocurrency by market cap is falling hard.
Bitcoin Is Heading Further South
At the time of writing, the asset is trading in the low $5,000 range – a significant drop from the $5,800-$6,000 we were witnessing just yesterday afternoon. The currency had fallen as low as $4,100 during all this hype and hoopla surrounding the coronavirus and the crashing market status, though it appears to have rebounded somewhat to garner at least an additional $1,100 to its price.
Still, it’s hard to get excited when just a month ago, the asset was trading for over $10,300. Thus, bitcoin has lost approximately half its value in about four weeks. In addition, other assets are joining it on its doomed train. Ethereum, for example, has fallen into the mid-$120 range, while Ripple is trading for 14 cents.
And analysts are adding to the gloom, claiming that things are about to get worse. Crypto trader Peter Brandt has gone so far as to suggest that the world’s number one form of crypto could fall below the $1,000 line before the panic dissipates. He explains:
If I interpret the charts without bias, I say sub $1,000 [per bitcoin.]
This would ultimately bring the currency down to its lowest point in about four years. As we all remember, 2016 – an election year – saw the asset trading near or above the $1,000 mark during the period’s latter half. This was considered a solid price back then, as bitcoin had been traversing through the $300 and $400 ranges for the past year or so.
However, we’ve since come to understand that bitcoin is capable of so much more. It reached $10,000 just last month; $13,000 last summer, and $20,000 just over two years ago. BTC, for the most part, has been an asset that performs and keeps its followers in anticipation of what could (and in many cases, will) happen, so the idea that it could lose four years of gains is beyond disappointing.
Others, however, scoff at the idea than any such thing will happen. Arthur Hayes – the chief executive of the cryptocurrency exchange BitMex in Seychelles – comments that these drops are temporary, and the result of widespread panic over a virus we still don’t fully understand. While the environment may be scary, he states that these drops are likely to cease sooner than we might anticipate.
Things Could Be Okay After All
In an interview, he says:
Bitcoin should enjoy a nice run back through $10,000 towards $20,000 by year end.
At press time, bitcoin has lost virtually all its gains for both 2020 and 2019, having fallen back to where the asset was trading in April of last year.