Without reiterating too much, this past week has been rather rough for bitcoin. The currency has lost about $2,000 and fallen from $12,000 all the way down to the low $10,000 position. To say that things are bearish for the coin would be something of an understatement.
Labor Day Is Here, and That Could be Good for Bitcoin
And yet according to some analysts, this week is going to prove pivotal for the world’s number one cryptocurrency by market cap. This is Labor Day week, which just last month, was named by George Ball – a former head of Prudential – as a huge turning point for bitcoin. He said that people were likely to take this time to really buy up any new units that are mined and work hard to increase their crypto stashes in the coming days.
In a mid-August interview, Ball exclaimed:
The time to reposition portfolios is before the fuse is lit, or when the fuse has been lit but hasn’t exploded yet… The notion isn’t to hide or seek a tax refuge, but to have something that can’t be undermined by the government.
In a way, this recent drop could potentially be what brings bitcoin back up. After all, $12,000 is a particularly high number, especially for people that have little to no crypto experience and may be looking to get involved in the bitcoin space for the first time. A $2,000 knockoff of the BTC price could potentially be what paves the way for many new traders and investors. They see that bitcoin is now less than what it was just two weeks ago, and they might feel more inclined to get involved and buy up.
This is the sentiment of people like Simon Peters. As an analyst at crypto exchange e-Toro, he said:
If there is a silver lining, it is this… that a drop back down to $10,000 could very well tempt some bulls who have been sitting on the sidelines to at last invest in bitcoin.
Ball’s initial reaction towards bitcoin was ultimately stirred by the economic conditions the country (and the world) is facing. Right now, the coronavirus pandemic continues to make its way through our financial markets, ravaging everything in its path including fiat currencies such as the U.S. dollar. As a result, many are seeing bitcoin as a potential hedge tool… Something that can sustain their wealth during times of strife and protect their portfolios from massive dips.
What Will the Next Few Days Hold for Crypto?
Ball admits he’s never been a big bitcoin fan or crypto advocate, but considering the present circumstances, he believes the asset is likely to make its way to the top of the financial ladder rather quickly.
The only question now is whether he’s correct in his sentiment. Will Labor Day week prove to be a big point in time for the world’s primary form of crypto? Will people take this time to invest and become enthusiasts? Will the price explode from here as people become more involved? The next few days will show us.