Bitcoin has endured a rough couple of weeks. Following a stint that saw it trading for nearly $10,000, bitcoin sunk last Wednesday by over $1,000 following Google’s announcement that it would ban cryptocurrency and ICO-related advertisements this coming June. Sadly, despite a few brief price hikes between $8,100 and $8,500, the price has fallen to a one-month low of $7,600.
The move likely stems from Twitter’s recent announcement that it would begin banning cryptocurrency ads within the next two weeks. Should the platform take such action, Twitter would ultimately become the third major player to strike against bitcoin after Google and Facebook last January.
Marketing and awareness surrounding cryptocurrency is likely to fall heavily, now that all three companies are turning their backs on marketing strategies. It’s an unfortunate move to say the least, and one that’s likely to have serious repercussions. Heck, it already has. Bitcoin has never been able to recover from its massive January fall since hitting nearly $20,000 last December. Mining is no longer considered profitable, and many investors have seemingly lost interest or aren’t paying as much attention to bitcoin and cryptocurrencies.
Twitter has also mentioned that it may ban ads regarding cryptocurrency exchanges, though there are likely to be loopholes in this policy once the platform’s regulations are set in place.
Freefalling along with bitcoin is ether, which early this morning, sank below $500 – its first time since last year – after the Securities and Exchange Commission stated it was unleashing several investigations into unregulated ICOs. The price plunged by nearly 20 percent, falling from its previous point of $580 to $470. At press time, the coin has recovered somewhat and is hovering at around $540. Litecoin is also down to about $150, and Ripple’s XRP sits within the $0.50 range.
The good news is that some remain bullish on bitcoin, and as investors have examined in the past, a rise in the bitcoin price usually means subsequent rises for remaining altcoins, primarily ether, bitcoin cash, litecoin and XRP. Fundstrat’s Thomas Lee states that based on bitcoin’s performance after both past and current dips, the digital currency could reach a whopping $91,000 by the year 2020. He’s recommending bitcoin investors hold on for just another two years, after which they’re likely to see massive returns on their investments.
Lee has garnered vast amounts of listeners thanks to the accuracy of his previous predictions. Lee has weighed in on the price since early 2017, when bitcoin was selling for less than $3,000. He predicted the bull run that would take the asset to its near $20,000 hike during the year’s final months. He has since stated that he sees bitcoin potentially striking $25,000 in the final act of 2018, and previously suggested that bitcoin would hit $50,000 in 2022.
His current prediction knocks that out of the park. If Lee is correct, bitcoin will not only reach large numbers much sooner, but the numbers will be bigger than originally predicted. All we can do is stand by and hope that Lee knows what he’s talking about.
*NOTE: Following the completion of this article, bitcoin endured a $600 price rise and is currently trading for approximately $8,200.