Bitcoin Prices (BTC) crossed $10,000 on June 2nd, 2020. The implications of this were many. ई-क्रिप्टो समाचार reached out to experts to find out what this means for the crypto space. Here is what they had to say:
“Since the bitcoin halvening, overall market sentiment has still remained quite positive. We’ve also seen a lot of altcoins thrive as projects like Ethereum have begun to show some promising gains.
So far in 2020, we’ve seen a lot of big news releases in regards to smart contract platforms. Cardano has now officially released a set date for their main launch event, while Ethereum and Tron have both already promised large upgrades this year as well.
I think we’ll see the smart contract sector continue to thrive this month. These large upgrades could create a lot of optimism in the cryptomarket.”
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John Todaro Director of Currency Research at ट्रेडब्लॉक
As we saw, $10,000 price level was not sustained with prices quickly falling back down around $9,500 amidst heightened volatility.
Bitcoin is still maintaining a positive relationship with US equities and I do not see an extended bitcoin bull run occurring without a clearer economic picture.
The economic fall-out from COVID-19 as well as recent political tensions could start to negatively impact the US stock market, pushing market participants into short term risk-off assets again, like US bonds.
बिलाल हम्मूद, co-Founder, and CEO of NDAX, a Leading Canada Crypto Exchange
“With the social turmoil and protests after the death of George Floyd in the United States, we have seen the value of the US dollar fall against other currencies like the British Pound and the Canadian Dollar.
Bitcoin is no exception as we have witnessed increased demand for the digital currency. Along with the protests, the economy halted from Covid-19, the fed printing trillions of dollars, and of course the Bitcoin halvening, these events have all driven the price past $10,000.
The $10,000 mark has seen constant selling pressure since October of 2019. Bitcoin’s inability to sustain itself over this psychological barrier has led to strong sell-offs in the past and this time around seems like no exception.
The FED has played a dangerous game with the economy. They are betting that they can print themselves from falling into a recession. Increasing debt and inflationary pressure on the US dollar may eventually see investors move away from the US dollar being the world’s reserve currency.
What better place for capital to go to then the deflationary asset that is Bitcoin? I believe there needs to be more than just a speculative aspect to drive the price up past $10,000. A lot of what is going to play out in the U.S. and global economy will shape the speed that Bitcoin will rise.
Speculation has been the strongest drive of the price of Bitcoin in the past few years. However, increased ability for investors to short the market with leverage has crippled the ability for the natural retail demand that we’ve seen in the past.
Due to its geopolitical neutrality, Bitcoin can be seen as one of the most beneficial ways to protest peacefully against all of the injustice and inequAlity nations are witnessing across the globe.”
Bilal is a visionary, successful startup entrepreneur and founder of the National Digital Asset Exchange (NDAX) with a background in Engineering. He has a proven track record with experience in growing revenues, building teams, and taking NDAX to a growth position within 3 months of operations.
Bitcoin appears to be following a classic collapse pattern following a bubble top. Bitcoin had surged to a peak in December 2017 between 19 and 20 thousand dollars and after initially slumping to around 3600 dollars during the March 2020 panic is now trading at roughly half its all-time top.
This is typical of how bear markets for nearly everything from canal shares in the 1830s to railroad shares in the 1870s to internet shares in the late 1990s and the early 21st century had behaved when they were forming their respective bubbles. Their collapse patterns are surprisingly similar to each other.
Assuming that this bear market pattern continues in classic fashion, eventually Bitcoin will be trading below one thousand dollars.
There is no way to know exactly when this will occur or how low it will eventually get, although probably this will happen during the next two or three years based upon previous extended pullbacks for other popular assets in past decades and centuries.
Because it is so difficult to compute the intrinsic or fair value for Bitcoin any estimates are going to be guesses.
In general, the more depressed the overall stock market becomes, the more Bitcoin will drop. If the S&P 500 completes its bear market and begins to rebound in two or three years, while Bitcoin is still dropping, then I would consider buying Bitcoin since it will likely eventually rebound along with the stock market. However, it will almost certainly plummet 90% or more first.
Bitcoin prices have just crossed the $10,000 mark. Will it stay there?
“Though it’s the most liquid, widely traded cryptocurrency on the market today, Bitcoin is very volatile. That makes it difficult to predict what it’ll do tomorrow, let alone next week or month.
But it’s true that economic uncertainty has done wonders for Bitcoin’s price recently, and it’s fair to bet that its value will remain elevated by historical standards.
What is going to happen next?
After a run like Bitcoin has had, a pullback is probably inevitable. Look for higher lows than in prior pullbacks, which may point to new highs in the near future.But be cautious — Bitcoin has seen plenty of drastic price declines in recent history. If you’re new to the space, pad your crypto holdings with a brokerage account promotion that pays out Bitcoin instead of cash or stock”.
“There is evidence to suggest there are two main reasons as to why bitcoin prices are hovering around $10,000. First, it is becoming a safe haven for investors; because of the economic uncertainty that the pandemic has caused, it has driven many people to buy bitcoin.
Second, it has become more mainstream, and because of this, more people are buying it. Overall, these two factors have increased the demand for bitcoin, and the price has gone up.
This, however, does not mean that bitcoin is going to stay over $10,000. It is still a highly volatile asset, and the market is easily spooked by price drops; i.e., potential buyers of bitcoin flee when they see its price drop.
Moreover, government regulation could greatly curve the demand for bitcoin. If a major government were to sanction its use, the price would drop dramatically.
As far as where the price of bitcoin is going: nobody knows. My educated guess would be that it will continue to steadily rise to over $12,000 because of its safe-haven characteristics”.
