At press time, bitcoin is below $10,000 and trading for just over $9,600. This is the second time this month the currency has hit such a low level. In addition, the currency has fallen by roughly $1,200 since late last night when it was trading for just shy of $10,900.
Bitcoin Just Keeps Tumbling
In all, bitcoin has fallen by approximately $4,000 since its high point of $13,600 in mid-June.
We keep going back and forth regarding bitcoin’s volatility, and the truth is, it’s as noticeable as ever. These last two weeks have been particularly hard on the currency’s overall stamina, with President Trump first emerging from the shadows to declare that he wasn’t a fan of crypto and that it “wasn’t real money.”
From there, Libra was grilled by Senate members who all stated the same thing: that they don’t trust Facebook and that it’s going to be a while before anyone feels comfortable enough to give the company their financial data.
Bitcoin has taken a very bearish turn as of late, and while analysts claim that the currency will ultimately rebound from all this, enthusiasts and traders everywhere are feeling the burn.
Tom Lee, a senior analyst at Fundstrat, says that Libra is consistently being “paired” up with bitcoin, which isn’t entirely fair to the latter. The two currencies have nothing to do with one another. They are both entirely different when it comes to their properties and ideals, considering Libra is a stable currency, and both have entirely different functions. He states:
In a world without Libra, is crypto going to be successful? Absolutely, so I don’t think it changes the long-term outlook for bitcoin.
Lee further states that Trump’s recent Twitter tirade against crypto will ultimately bring bitcoin to the $40,000 mark by the end of the year. While Trump’s words were largely negative, bitcoin will ultimately be brought closer to mainstream status through his words, and people are the world will take notice.
Everyone’s Weighing in on Crypto, and It’s Gonna Be Huge…
On balance, it’s a positive because cryptocurrencies and bitcoin really are in the main stage, now. Congress, the Fed, the president weighing in. It’s going to force everybody who is not involved and remember a very small percentage cares about crypto and bitcoin. It’s going to force the other 98 percent of the world to think about what it means… Bitcoin is now trading at a level that it’s only seen three percent of its historical days. If you go back to every milestone that that was achieved, bitcoin subsequently rallied somewhere between 200 percent to 400 percent within the next four months, so I think if that’s playing out this time, that means bitcoin could be $20,000 to $40,000 sometime in the fourth quarter.