Will Cryptocurrencies Remain in Eternal Winter to Their Total Destruction?
The news of cryptocurrencies implies that the topmost twenty cryptocurrencies are losing their value and Bitcoin has decreased to $3450. Formerly, Bitcoin experienced the highest unrepeatable price. Falling trend of this cryptocurrency value led to much anxiety and shareholders in this area faced an unknown and ambiguous future. Before that, supervisors of cryptocurrency remarked that if Bitcoin price does not climb to more than $16000 and remain 20% lower than its highest historical price ($20000) until February 2nd, it will be the longest bear market this cryptocurrency has experienced in ten years.
Cryptocurrency Winter Will Be Longer
Mike Novogratz, CEO of Cryptocurrency Merchant Bank Galaxy Digital, confessed that probably cryptocurrency winters will linger more than what he has expected; however, he believes that finally by entering the investors to the market, Bitcoin will be saved. Bitcoin which has experienced a bear market since January 2018, could not improve its price above resistance levels and decreased since November 2018 from above $6000 to mid $3000.
Bitcoin $20000 Pricing in 2019
Bitcoin has dropped to more than %47 in its lowest annual price in a two-month time period and recorded one of the sharpest short-term drops compared to that of recent years. The long-term market recession has caused many cryptocurrency fans to get dissatisfied, and Novogratz is one of those people.
In November 2018, Novogratz clearly determined $10000 as the target price for the end of the first quarter of 2019. Furthermore, he predicted $20000 increase of Bitcoin price in the current year; however, due to the continuous market recession without any positive sign, it seems that he has adopted a more meticulous perspective. In the analysts’ belief, Bitcoin price stability shows the lack of transaction activity and general interest. It sounds there is not any expectation for Bitcoin to experience price increase in the near future, but it is still the first days of February, and there remains 11 other months from 2019.
All Speak, but There Is No Act
The critics say that important bitcoin analysts such as Dan Morehead, Mike Novograts, Winklevoss twins and Jeremy Allaire, Circle CEO, are very optimistic; since they have invested a tremendous amount of money on cryptocurrency success; so they are very emotional for its development.
Last month, Novogratz increased his stock in the digital galaxy which was more than 76.6% to 79.3%. Wall Street former banker is currently the largest shareholder of Digital Galaxy with 221 million stocks.
Will Bitcoin Totally Drop?
In response to all uncertainties, Novogratz points that “revolutions don’t occur overnight.”
Meanwhile, the skeptical bet that cryptocurrencies market has fallen into the extinction black hole. There’s no surprise that most of the oppositionists are from financial institutions and banks whose lives have been threatened by cryptocurrencies.
Three last weeks, Antony Grisanti anticipated that Bitcoin price will reach less than $3000 in a cheap sell-off. Like other supervisors, he believes that before Bitcoin drop, it is just the matter of time. Grisanti is a CNBC analyst who has done energy transactions in Bear Stearns before; he says that there will be some minor changes in Bitcoin price and it is because the people address liquidating their assets.
CNBC analyses: Bitcoin Proponents Are Not Aware
Scott Nations, Grisanti’s colleague, and CNBC interpreter says, too, that Bitcoin is valueless. Disrespecting Bitcoin proponents, he has stated that they don’t have enough experience to understand what is ahead of them is just a bursting bulb.
There always have been people in all fields including economic, social and political hoping to improve the situation and there is also a group who are always hopeless. Cryptocurrencies are not an exception too. Some predict that the cryptocurrencies will exit this recession and even enjoy the value amounting to $91000. Some wait to see its destruction. All in all, we should consider Metcalfe’s law saying that the more the people are inclined to a technology, the higher its value will get. There might still be the place to develop cryptocurrencies, and they might have not disclosed all their potential.