Will bitcoin stop crashing in the coming weeks?
Bitcoin Has Taken Several Hits Lately
This is likely a question on several crypto enthusiasts’ minds, as the granddaddy of all crypto can’t seem to stop falling further down the financial ladder. At press time, the crypto unit is trading for just over $9,400 – the lowest it’s been in several weeks.
What the heck happened? Just last month the bitcoin price was at a whopping $13,600. What would make it fall so easily?
As Live Bitcoin News has covered recently, U.S. President Donald Trump had a few unflattering things to say about bitcoin and its crypto counterparts, claiming that they weren’t “real money” and that their values were based on “thin air.” It appears bitcoin hasn’t established as thick a skin as we originally thought, though to be fair, it’s likely the currency would have taken a harsher lashing from words like these three or even two years ago.
In addition, controversy continues to surround Facebook’s Libra currency. The competing unit – which David Marcus and his team allege will be a stable currency – has been hit left and right by members of Congress who claim the currency isn’t safe and want more information before the company can continue its development plans. For now, it looks like Libra is going to be delayed at least another two years until they get their answers.
All this is likely taking a massive toll on the currency, but there are those that refuse to believe it will break. This is a short bump in the road the unit is encountering, but it’s not likely to bend until it snaps.
Dan Morehead is the CEO of Pantera Capital. He still has high hopes for bitcoin and suggests the currency could potentially spike as high as $42,000 by the end of the year. He states:
A small kernel of something very important gets people to be crazed about [bitcoin] and then the trough of disillusionment [occurs], and we’ve already gone through two of those cycles in the six years that we’ve been investing in it.
Where he thinks people may be confused is in the idea that bitcoin is an established technology. He says that bitcoin and other cryptocurrencies are likely to require a minimum of 20 full years before they truly get off the ground, and thus far, we’re only halfway there (bitcoin emerged in 2009).
Things May Turn Out Well in the End
Still, he’s confident that growing user interest will propel bitcoin forward, and that it could pass $300,000 within the next three years:
We’re always trying to look three to five years out and be thinking about where the industry will be rather than worrying about these kinds of manic phases of bubbles and then the crypto winters where everyone thinks it’s never going to work.