As we all know, bitcoin has been doing quite well as of late. Analysts everywhere are excited about bitcoin reaching its all-time high again, and many believe that the asset is on the verge of jumping even further.
Bitcoin Is Doing Well, But Is It About to Drop?
However, some have warned that a correction may be on its way, and while the asset is doing extremely well at the time of writing, now may not be the time to purchase new units. According to Ian Balina, for example – chief executive of Token Metrics in Washington – the price of bitcoin could potentially fall to as low as $14,000 in the coming weeks.
In a recent interview, he states:
Bitcoin is performing better than expected. While still bullish long term due to macro-economic factors and large corporations getting into crypto, we expect bitcoin could correct back to around $14,000 by the first week of December.
It might be a bit difficult to believe this message at this point considering we are already in the first week of December and this hasn’t happened. However, he doesn’t appear to be alone in his present sentiment, as other industry analysts are telling their followers to lay off buying the world’s number one cryptocurrency by market cap – at least for a little while.
Phillip Gradwell – chief economist at blockchain analysis firm Chainalysis – is also issuing a warning, telling all who will listen:
The bitcoin price is being driven by demand for a safe haven asset. This has been building from mid-March. Since then, over one million bitcoins have been bought by investors, mostly from western exchanges. This growth in demand is meeting a shrinking supply, as fewer and fewer bitcoin holders are willing to sell, with the supply of bitcoin liquid and available to buy as low as it was in mid-2017, before the previous bull run.
If the currency were to drop back down to where it was in mid-2017, the asset would literally have to shed more than $15,000 off its current price. This would be a serious loss for the asset and would likely put many people back in the same mind frame they possessed at the end of 2018, when after a year of steady drops, BTC eventually crashed and reached a price of roughly $3,500 per unit.
Maybe Things Will Remain the Same
However, not everyone is convinced that the future will hold gloom and doom for bitcoin. Micah Erstling – a trader at the Hong Kong-based bitcoin and crypto market maker GSR – says that many investors, himself included, think the asset will easily maintain its present bull run into the coming months. He recently mentioned:
Belief is growing that we could reach $20,000 before the end of the year. More importantly, investors believe that this rally is sustainable. Many signs point towards that.