With the bitcoin and crypto spaces in full crash mode, many are wondering when these ugly bear conditions are coming to an end. According to many analysts, there is a light at the end of the tunnel in the sense that bitcoin is likely to top its near-$70,000 all-time high (achieved last November) before we hit 2025.
Will Bitcoin Recover Before 2025?
Meltem Demirors – the chief strategy officer at Coin Shares – is one of the industry heads offering this sentiment, claiming in a recent interview:
In the next 24 months, we will see new all-time highs in bitcoin… There’s a very long, long tail of crypto assets that I think will go to zero. That doesn’t really have any long-term prospects as we’ve seen with so many tech stocks as well.
The digital currency space has been crashing since the beginning of the year. Bitcoin – the world’s number one digital currency by market cap – has lost more than 70 percent of its value. It was initially trading for about $68,000 per unit nine months ago. However, at the time of writing, it is struggling very hard to retain just a $19,000 or $20,000 price.
Other assets – such as Ethereum, the world’s second largest cryptocurrency and the primary competitor to bitcoin – followed suit. ETH was trading for around $5,000 per unit in November, but in mid-June of this year, the currency dropped below $1,000 for a brief period, sending negative ripples throughout the industry. While the currency has recovered somewhat since then, it’s nowhere near the glory days of the late 2021 bull market.
Louis Schoeman – managing director at broker comparison site Forex Suggest – explained the crypto crash is not necessarily a bad thing. He says it’s going to rid the space of all the bad actors and all the people that aren’t taking crypto seriously. They were primarily interested in making money and had no interest in sticking around long term.
Thus, the crash is likely to decipher who is loyal and who is simply in this for themselves. He said:
This is a cleansing process of note, as we believe between 80 percent to 90 percent of the crypto projects will not survive this period. It also serves as a massive opportunity for many no-coiners to enter the crypto market for the first time ever at prices not seen since 2017. Fortune favors the brave in crypto right now.
We’ve Seen All These Patterns Before
A crash of this magnitude seems to happen every four years or so. This is also succeeded by a major jump into new high zones, like we saw last year and in 2017.
Thus, if this pattern continues, the idea of reaching new highs before 2025 makes perfect sense and falls in line with what we’ve witnessed in the crypto space before.