Bitcoin has dropped another $200 from yesterday, and is now trading for about $9,300. This is a $500 drop from the currency’s recent high of $9,800, proving that it was unable to test the $10K line in what was its second attempt since mid-March.
While it is disappointing to see such a drop take place, there is good news afoot that bitcoin is managing to withstand present resistance levels. The currency has dropped not by $2,000 or even $1,000 – the fall incurred consists of $500. To put things bluntly, “it could have been worse.” A lot worse, and the fact that bitcoin is still hovering above the $9,000 line is a good sign that the bullish momentum of the past few weeks has not decreased entirely.
Still, however, bitcoin’s fall to its present spot marks a nasty plummet in the cryptocurrency market cap, which has ultimately lost about $20 billion of its previous value.
Yesterday, we discussed the probability that Warren Buffett’s recent string of ugly comments towards bitcoin may have worked to bring the price down. Today, Buffett is being joined by fellow billionaire Bill Gates, who also had a few rough sentences to spew when describing bitcoin’s alleged future.
“I would short it if there was an easy way to do it,” he exclaimed in a recent interview with CNBC. “initial coin offerings and bitcoin are not producing anything. It is kind of a pure greater-fool-theory type investment.”
Buffett himself added to his original statement, and admitted that he does not hold any investments in cryptocurrency.
“I get into enough trouble with things I think I know something about,” he stated. “Why in the world should I take a long or short position in something I don’t know anything about?”
The unfortunate news is that Gates and Buffett are now being joined by other Wall Street figures, including DataTrek Research co-founder Nick Colas, who is known as the first Wall Street analyst to cover bitcoin. He is warning everyone to steer clear of the virtual asset, and says that now is not the right time to buy.
“It has come down quite a long way, and we are getting a lot of people asking, ‘Is now the right time to buy?’” he commented in a recent interview. “The short answer is ‘no.’”
Interestingly, however, others see bitcoin’s recent drop as a “positive” move – a sign that the currency is consolidating, and that another price breakout will occur sooner than we think.
David Johnson – CEO of tasking platform Latium – says that $10,000 is a very “psychologically important” level, and that encountering some resistance at this point is relatively normal for bitcoin.
“Any market consistently making higher lows is signaling for a bullish break out,” he explained. “I anticipate once we get to around $10.5K, then $12K will come relatively quickly.”
Blockchain investor, advisor and influence Oliver Isaacs agrees. He believes that the price of bitcoin will continue to rise in the short-term, as more institutional investors like Goldman Sachs are beginning to show interest on behalf of their clients, which will lead to more money being poured into the industry.