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What will be Bitcoin’s (BTC) bottom level (ever)?

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On August 8th, the SEC announced they are not ready to emit a decision on the Bitcoin ETF and that it will have to wait until next September 30th. The market reacted to this news by falling like a lead balloon.

There has been a bearish run on Bitcoin since last December 18th that hasn’t stopped ever since (if some fluctuations have been observed) and Bitcoin’s slippery slope has dragged the whole market behind it. But even in the current prolonged bearish trend, last Wednesday’s losses are nothing short of the epic which is prompting the question of how low can Bitcoin go before it bounces back?

It’s a relevant question for sure, but it’s also one that nobody can answer unless you believe in crystal balls. We don’t. Many crypto commentators are advancing predictions about the lowest possible threshold for the asset. 

Numbers such as $3,000.00, $5,800.00 or $6,200.00 (the value about a few days ago is $6,330.18) are tossed around like if nothing but very little if any, evidence or reasons are given to support such hypotheses.

So let’s take a moment to consider the current situation and give it some calmed, rational thought so we can figure out what the heck is going on and put things in perspective.

Let’s start with the ETF issue. Let’s realize something. We don’t need any ETF at all. Don’t get us wrong, it would be good to have one and, when the SEC finally approves at least one of the nine current proposals for an ETF, it will be a good thing, and it will probably be interpreted as an endorsement for Bitcoins in particular and digital assets that have never held and ICO in general. But the fact remains that there are plenty of accessible ways to buy and trade with Bitcoins so the ETF would be a sweet cherry on top of the crypto cake but it’s not the cake by any means.

Also, there’s not that much proof that it was the SEC announcement that prompted Wednesday’s (Aug 8) drop. It’s an assumption based on timing. Weird as it may seem, the crypto markets have shown themselves to be indifferent to the news for the most part so there is a chance that it could just be bad timing or a strange coincidence. We are not saying that we can explain the sudden drop in value that happened last day 8th. We are just saying that timing is not the same as cause and effect.

The next thing to consider is that the current market is driven by speculation and irrationality, as is usually the case in bearish trends in most markets. It’s the fear and perception that dominate the market instead of the objective value in it.

But the most important thing to realize is that today’s Bitcoin is not any worse than it was the last December when it went over 16,000 USD per token. It’s better, if anything because the hash difficulty is increasing thus improving security and the Lightning Network is online and working very well (with a few routing glitches that are being fixed as we write). Nothing is happening with Bitcoin in the real world that could suggest that is any less valuable now than it was nine months ago.

So the recent market (we are in green for a couple of days now though) could look like a nightmare but is, in fact, a dream come true. It could end up being the chance of a lifetime to buy low and sell high a few months or years down the road. 

It’s also worth remembering that, historically, in the crypto and every other market known to man, everytime a bearish run finishes, the following bullish run brings the market to higher levels than it had before.

While we are not going to give you any financial advice at all, we are confident that speculation and irrationality can be made to work to the advantage of the players that go for value and act with rationality, discipline, and patience. Don’t despair because, even if Bitcoin hits the 3,000 USD mark, sometime in the future it will surpass last December’s levels.

In the end, it doesn’t matter all that much how low Bitcoin goes except for the opportunity it affords us to buy cheap. The important thing is that, sooner or later, it will bounce back.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

Image courtesy of Yannis Papanastasopoulos on Unsplash

Bitcoin

Bitcoin Price Dumps Below $41,000 Amid Uncertainty

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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.

Fundamentals

Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.

Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.

Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.

Last week on Thursday, cryptocurrency experts took notice of…

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Bitcoin

Bitcoin Price is in Consolidation Mode Despite Market Optimism Post-Fed Decision

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Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.

Economic Outlook

Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.

The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.

Additionally, the central bank indicated that three rate…

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Bitcoin Price Blasts $44K in Spectacular Surge as Spot Bitcoin ETF Approval Looms Large

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Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.

Fundamentals

Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.

According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.

Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…

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