The past one week has seen Bitcoin prices drop to the lowest in the past three months. The drop was triggered by a variety of events that came together to create the perfect storm for the cryptocurrency market.
China has followed up its ban on ICOs and trading by banning all foreign exchanges. Many major banks have said they will not allow their credit cards to be used for the purchase of cryptocurrencies. Also, India's finance minister has said cryptocurrencies will not be viewed as a legal method of payment and they will also try to tax crypto assets.
All of these have led to a major drop in the price of Bitcoin. This leads to the question: What is Bitcoin's future? Analysts maintain that the drop in its price is temporary. Bitcoin price is predicted to reach $25000. This will not happen overnight and will take some time. The current dip can just be thought of as the market correcting itself.
Cryptocurrencies pose a major threat to banks. Their philosophies are completely opposed to each other. Banks are all about regulation and centralization whereas cryptocurrencies are about decentralization. The rise in the popularity of cryptocurrencies has posed a major threat to the banking institutions. This is one of the reasons why major banks are refusing the use of their credit card for cryptocurrencies.
Bitcoin and other altcoins are really the future of currencies. Bitcoin has the potential to replace the traditional fiat currencies. It will take a while for this to become a reality, but it will definitely happen. Slowly, banks are going to have to learn to adapt to cryptocurrencies. This will also lead to the bans being lifted by countries like China.
Bitcoin is also a cryptocurrency that is accepted by all exchanges. You can always buy Bitcoin first and use apps like Shapeshifter to convert to other altcoins you want.
Bitcoin has a real demand and serves an actual purpose. It is the future of cryptocurrencies and it will soon recover from the dip in its price. However, the price drop does give you a unique opportunity to buy Bitcoins. As with shares, the key to making profits in cryptocurrency is also to buy when the price drops.
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@Acknowledgement
According to the firm Autonomous Next, the number of hedge funds investing in digital assets like Bitcoin has grown rapidly to more than 100. Since the launch of Bitcoin Futures on the Chicago Mercantile Exchange in December 2017, it shouldn’t be a surprise to anyone why the price of Bitcoin is down 50% from the high.
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Only Retail Investors chase price and buy high and sell low, while the Professionals buy low and sell high. The Hedge Funds have purposely sold Bitcoin futures to get in a better price.
At the moment, there is a war taking place between the buyers (Hedge Funds) and the sellers (Retail Investors) called capitulation. That line in the sand was at $9000. Capitulation is when investors give up any previous gains, by selling, in an effort to get out of the market. Capitulations are outcomes that result from the maximum psychological and financial pain that can be endured by a group before throwing in the towel. The Retail Investors are throwing in the towel after seeing a more than 50% correction in the Bitcoin price to the buyers, the Hedge Funds. With 100s of millions of dollars to invest, we are witnessing an accumulation phase by the Hedge Funds between $6000 and $9000.
The Hedge Funds are loading up and buying from the Retail Investors. But to fill all their buy orders, as the sell orders dry up, price must go down to the next stack of sell orders. We are approaching what I believe will be the bottom of bitcoin at $6000. My first target is $12,000 and my second target is $17,000 over the next 3 - 9 months.
The easy money has been made over the last 12-18 months. With the big boys in the game now, the rules have changes. The question is, are you ready to play to win with a new play book?
This post is my personal opinion. I’m not a financial advisor. Do your own research before making investment decisions. By reading this post, you acknowledge and accept full responsibility of any gains or losses.
I agree, that the price will rise again during this year. But I disagree, that Bitcoin (BTC) is the future of currency. maybe a hard fork, but until now, every hard fork failed or at least weren't a successor of BTC.
Bitcoin is too slow, too costly and too inefficient to maintain the network. For everyday usage, it's just not practical in it's current state.
Nice post
Carry on sir
Bitcoin price is very low whether it will last long
thank you for giving us hope, hopefully prices will upgrade soon
This post has received a 12.39 % upvote from @getboost thanks to: @macbaren.
Bitcoin has a great future, don't panic about regular corrections, which will always happen, the best is yet to come 😋
There is no doubt that Bitcoin with a hand full of other crytos will be the future of money, that is why just a fraction of it is valuable, so buy while the market is soft.
I think bitcoin is a dead coin, costs too much to mine and only the mining groups will have the incentive to keep the network running because they own so much.
Sneaky Ninja Attack! You have been defended with a 7.11% vote... I was summoned by @macbaren! I have done their bidding and now I will vanish...Whoosh
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