Bitcoin, despite a few ups and downs over the past week, appears to be doing quite well when compared with where it’s been in the past. No doubt the asset has proven itself in the past 12 months, and the currency is turning out to be one of the top assets a person can invest in. Sadly, not everyone is convinced, as according to a new survey, many of the world’s financial traders view BTC as being trapped in another bubble and feel its recent surges have nothing to do with growing legitimacy.
Bitcoin Is Doing Well, but Not Everyone Sees This
Over the past year, bitcoin’s price has spiked by a whopping 475 percent. This is extremely impressive, but the news appears to be failing to make any sort of impression on traders, who according to data from a recent survey, believe that 2021 will exhibit the crypto behavior traders were privy to in 2018, and with last week’s drop by roughly $10,000, one can understand why they would feel that way.
2018 was a disastrous time for crypto. If 2017 was a period of power and stability, 2018 suggested that crypto was weak and illegitimate. 2017 saw bitcoin reach a pinnacle in that the currency hit its then all-time high of nearly $20,000 per unit. Everybody got excited, and immediately began jumping on the bitcoin bandwagon out of fear that they were going to miss out on something revolutionary.
While everyone foresaw bitcoin continuing its meteoric rises into the new year, the exact opposite occurred. The world’s number one digital currency by market cap began dropping as soon as 2018 showed itself. By early February, the currency had lost more than $10,000 and was trading in the low $9,000 range. By summer, it was at $6,000, and by Thanksgiving of that year, bitcoin had fallen to about $3,500 per unit. Thus, BTC had failed in everyone’s eyes.
Not as Much Harm as One Might Think
Now, bitcoin has surged to a record high, shooting beyond the $50,000 mark in early February and more than doubling its 2017 high. However, not everyone is convinced that 2021 is going to be a stellar year. In fact, the survey suggests that many traders think 2021 and 2018 will be one and the same. As many as 394 investors took part in the survey, and nearly 72 percent shared the opinion that bitcoin was trapped in another bubble – a bubble that wasn’t going to last much longer.
There is some positive news in that many of the participating investors do not see a huge bitcoin crash as anything significant… At least not significant enough to do any serious damage to the economy. Only about 29 percent of participating individuals feel that the currency dipping to new lows would cause serious economic harm to global markets, while more than 30 percent feel the impact would be small or nonexistent.