Boy oh boy… Where to even begin?
Yesterday, we mentioned that recovery in the crypto arena may be happening, but judging from today’s massive price drop, it appears that isn’t the case. Bitcoin has fallen by approximately $600 from yesterday’s high of nearly $7,500. Bitcoin has been in a serious slump for the past two weeks, and it appears that slump is here to stay a while longer.
Analysts are discussing what could potentially be the primary causes for the drop. Some say regulation. Others discuss the idea that bitcoin and cryptocurrencies are still birthing technologies, and haven’t worked out all their kinks yet. Some say bitcoin is still so new, it’s vulnerable to news trends and even negative word of mouth. These are items we’ve all heard before, and will undoubtedly hear again over the coming months.
But where most analysts hold common ground is in their thoughts that bitcoin recovery is closer than we think. Despite the massive volatility we’ve witnessed over the past few weeks and the consistent price fluctuations that have undoubtedly put enthusiasts on edge, those heavily involved with bitcoin still say it’s everything it claims to be, and remain bullish about the future.
Former COO of Skype Michael Jackson is one of those figures. An alleged bitcoin expert, Jackson recently spoke with The Independent to deliver his thoughts on the future of the currency:
“The price has been driven by speculators, and they suddenly got cold feet, but there’s considerable effort going on behind the scenes, including new underlying technology that is powering faster transactions. Meanwhile, regulators seem open-minded and are now working to eliminate the risks for consumers, so I see no reason why bitcoin shouldn’t fulfill its dream, and if it does, then recent price falls will appear trivial.”
In addition, another source offers long and descriptive reasoning about how and why bitcoin could triple by the end of the year, which would place it anywhere between $20,000 – $23,000 – stronger than where things ended in 2017.
The source suggests that bitcoin users have grown exponentially since the currency first became available; that cross border and wire transfers involving bitcoin have also surged, and that there are over 12,000 blockchain and bitcoin venues based in the United States, Europe and Japan.
In addition, the number of brick-and-mortar stores accepting bitcoin and cryptocurrency payments has ultimately grown by about seven to eight percent since early 2017. That’s a big number for such a short period of time. Granted the annual transaction volume heads for the trillions (instead of the billions where it now stands), bitcoin’s price of $20,000+ wouldn’t be too off the mark.
It is hard to take everything seriously, however, considering there are so many clashing factors and analysts saying the opposite of one another. Yesterday, we discussed a group of researchers in Europe that predicted further drops and swings in the bitcoin price before serious recovery was witnessed, while today, many alleged experts think the opposite.
If there’s one thing we know for sure, it’s that the currency is not out of the woods yet, and that things have just as much chance of moving up as they do down – at least for the time being. Let’s hope that as we approach the summer, bitcoin’s price experiences the changes so many bullish analysts are predicting.