Last Updated on May 13, 2021 by Larious
According to a market analyst, the subsequent big bitcoin price collapse might wipe out up to 90% of the cryptocurrency’s value, resulting in a years-long “crypto winter.” Bobby Lee, the creator of digital currency BTCC, believes bitcoin could climb another 500 percent before the price bottoms out, adding to the vast increases it has seen in the past year.
The currency price had just trebled after a string of flash crashes, caused in part by the coronavirus pandemic, in March of last year. Its stock has increased by more than 1,000% in a year, and now it is only a few hundred bucks short of its all-time peak of $61,000.
The increase is not unusual – much more significant percentage increases were seen in 2013 and 2017, BWC Event ultimate destination is still unknown. Mr Lee told CNBC, “This is still the market correction year, 2021.” “Every three or four years, bull market periods occur, and 2021 is one of those years.”
Mr Lee estimated that perhaps the value of bitcoin will climb to $1 million “by the season” and then to $300,000 even by the beginning of the year. “Bull market peaks come and go, and during a stock market high, it may eventually fall by a significant amount, which is where the bubble bursts.
Other cryptocurrency experts agree that the current price boom is unlike the others before the first one and that it would not always finish in the same way. “Bitcoin’s ebb and flow, as well as cryptocurrency market fluctuations, are indeed characteristics of the room, but this isn’t 2017,” said Paolo Ardoino, chief technical officer at cryptocurrency Bitfinex.
“During the crypto winter, a new decentralized finance stack was secretly designed. Meanwhile, the context of growing institutional spending and retail acceptance continues to gain traction, indicating significant evidence on the ground. Mining can’t be underestimated, as per large financial firms and conventional fintech firms.”
Several prominent personalities in the cryptocurrency sector have predicted a $100,000 price for 2021, which is still very modest compared to other investors’ predictions. “Bitcoin has had a sensational year so far, with returns that have left most currencies in the dust,” said Jesse Cohen, senior economist at Investing.com, in an interview with The Independent. “We expect high institutional demand to persist in the coming months, pushing bitcoin prices over $100,000, with prices peaking about $250,000 by July.”
This forecast is similar to that of Tim Draper, a well-known bitcoin promoter and billionaire businessman, who predicted in 2019 that only the cryptocurrency price would see huge gains, pushing bitcoin well above its previous high of $20,000, that one reached in 2017.
Bitcoin has failed miserably as a means of purchasing goods, and it also failed miserably in its first major test as either a haven during the stock market crisis last year. Its tremendous volatility has seen more collapses in the previous three years than crude oil has in the last two decades—which means it is far from a stable store of value.
Lately, it’s been on a lurching path that’s been typical of it: Since reaching an all-time high of $64,800 on April 14, Bitcoin fell over 23% at $49,700 at brunch on April 23, losing more than $200 billion in market capitalization. “The only remaining ‘use case’ for Bitcoin is hoping the valuation rises and anyone pays you more than you paid,” says Alex Hendricks, a Dutch entrepreneur who operates the website which monitors Bitcoin’s energy consumption.
Bitcoin is a digital currency that was created in 2009 by Satoshi, the term given to the virtual currency’s anonymous creator (or creators). Transactions are stored in a database, which displays the past of each unit’s transactions which may be used to confirm ownership.
Bitcoin is not sponsored by a sovereign or distributed by a central bank, which is the case for conventional currencies. As a result, no organizational debt levels or Form 10-Ks are available for inspection.
When he predicted that Bitcoin would reach $250,000 “throughout 2022 or the starting of 2023,” it was traded for less than $4,000. He has also backed up the prediction, saying in a newsletter earlier today that bitcoin can reach $5 million in the future.
Although there is a chance of substantial losses when investing in cryptocurrencies, there is also a considerable opportunity for significant profits. Banks are profit-making companies, so the recent earnings from cryptocurrency investments – including the recent major sell-off – and the somewhat optimistic projections should entice them to at most speculate in the room, despite the tax burden.