What the heck is going on with bitcoin?
Bitcoin Has Fallen… Again!!
Just yesterday, we reported that the currency was again above the $10,000 line, but now, it seems the currency is incurring a major drop and has fallen into the mid-$9,000 range overnight. At the time of writing, the world’s number one cryptocurrency by market cap has dropped by more than $600.
And yet, there are analysts that still stand by the currency and say it’s experiencing its greatest trends in some time. Tone Vays, for example, is a YouTube host of crypto-related material and videos. In a recent interview, he says the rally we’ve been seeing up to this point in 2020 is far more sustainable than the “slight jump” we witnessed last year.
He attributes this to various elements, including more interest from retail merchants. Bitcoin and its altcoin cousins, while not mainstream forms of payment just yet, are working hard to earn a place alongside credit cards, cash and other means of paying for goods and services, and merchants are slowly becoming more open minded to their properties.
In addition, he says that this year’s spikes are occurring at a steadier pace than those of 2019, which means they’re likely to last longer and be less susceptible to rapid swings. He states:
I do see a little bit more retail interest helping to drive this current run up. This run is moving a little bit slower. It’s a little bit more orderly than the last one.
One of the reasons – according to Vays – why the run of last year failed miserably is because when bitcoin began to show the slightest hint of promise, many traders and enthusiasts sold their altcoin holdings as a way of purchasing bitcoin. In the long run, however, this was simply a case of moving money around that already existed in the space, rather than new money entering.
With the lack of new investors, Vays says the price jump wasn’t likely to survive due to lagging liquidity. He comments:
This rotation out of altcoins was basically the money that was already in the crypto space. If ten percent or 15 percent of Ethereum is exiting into bitcoin, that will significantly raise the price of bitcoin.
The Halving Will Help Greatly
And like many of his associates, Vays is touting the halving, which he says is likely to push bitcoin beyond any limits that may have been instilled before. He explains:
This time around, we are much closer to the halving, so there is hype in the crypto space because the bitcoin production is about to become half in about two-and-a-half months or so.
So maybe, just maybe this $600 drop is something of a fluke – a slight calming of the storm before things get really “hairy” this coming May.