Bitcoin - Bear Market or Correction Before All-Time Highs?
With a massive sell-off, Bitcoin is currently in a bear market and has dropped nearly 20% from its highs. A crypto analyst at JPMorgan says that a bear phase is coming. However, he believes that the current market share of bitcoin is low and that a bull phase is soon to follow. This article looks at how the current situation in the cryptocurrency industry may affect future prices.
A crypto analyst at JPMorgan Chase, John Normand, stated that Bitcoin may be in a 'bear market' which could go on for a while longer yet. He went onto say that another correction was looking increasingly likely and said this would be healthy before any new highs are seen.
Normand says: "Given [the] lack of new buyers, Bitcoin could test $5,000 based on the cost of mining. This is possible if Bitcoin prices dip below $10,000 and stay there for a considerable period of time."
However, Normand believes the current market share of Bitcoin is so small compared to its potential that another bull phase can be expected soon. He predicts that Bitcoin would need to increase its value by about 100 times in order to replace gold as an alternative store of value. A report earlier this month suggested that Bitcoin's daily electricity consumption was comparable with that of Ireland.
-Theoretically then it's cheap but practically not cheap because what you're doing is trying to fulfil all these transactions on chain when they should be off chain- says Charlie Lee, creator of Litecoin.
Bitcoin is incredibly resilient , Bitcoin is one of the most resilient financial services to have ever existed it's lasted 10 years and survived four crashes so far - says Max Keizer, host of The Keizer Report.
Bitcoin looks to be consolidating at this time after recent price falls , looking forward there are many catalysts which could push Bitcoin up this year including the CME futures market opening in Q4 2017 - states Caleb Chen London Youtuber.
I think Bitcoin has reached its low point for this cycle , Bitcoin will definitely go up by the end of 2018 but whether it reaches $20,000 or $40,000 no one knows just yet because Bitcoin hasn't started its bull run yet - Bitcoin trader and investor.
One Bitcoin bull, Vinny Lingham, CEO of blockchain identity startup Civic took to Twitter to comment on Bitcoin's drop: "This is a Bitcoin Bear Market Rally. This isn't the end. It's just the beginning."
Posted Using LeoFinance Beta