The Bitcoin pessimists are at it again and have called yet another Cryptopocalypse – perhaps a little too early. America’s 2nd biggest bank by total assets, America Corp, boldly declared that “the greatest bubble in history is popping” – yet, it doesn’t seem to be the case. Bitcoin took some relatively big blows in the last few months, well since the beginning of 2018 to be exact, but last weekend prices finally broke the critical $8K level and have been, more or less, steadily collecting gains ever since. This is not to say that the uptrend is here to stay and that this isn’t just another one of Bitcoin’s short squeezes, but can we also really say that the downfall of the Cryptocurrency market is here? Let’s not take anyone’s word for it and take a look at the facts. What has history taught us?
So, what if I were to tell you that Bitcoin plummeting by nearly 60% didn’t come as a surprise to some? I’m specifically talking about Julian Hosp, Cryptocurrency entrepreneur, who in December 2017 said “I think we’re going to see Bitcoin hitting the $60,000 mark, but I also think we’re going to see Bitcoin hitting the $5,000 mark. The question is though, which one is it going to hit first?” Julian Hops is heavily involved in the Cryptocurrency realm, being the president and co-founder of TenX, a company dedicated to making it easier for people to spend their digital tokens.
Back to the history, we were digging into though – we’ve talked about this in a previous article and I’m going to bring it up again. Bitcoin has “crashed” 30% SIX TIMES in 2017. Each “crash” has been followed by an increase of: 76%, 237%, 183%, 165%, 152%. Bitcoin takes 7 steps forward, 2 steps back. Again, this not to say that the uptrend is here to stay and that this isn’t just another one of Bitcoin’s short squeezes, but I ask again, can we really say that the Cryptocurrency bubble is bursting? If Julian Hops’ forecast were to materialize then would this not further underline the volatility of the world’s most popular Cryptocurrency? Then I ask you this, are we here for the flatlines or are we here for the ups and downs?
THE SOUTH KOREAN PUPM
Both South Korea’s Cryptocurrency market and financial sector are heavily influenced by word of mouth – it’s just how things work. If countries like Japan and South Korea were to trigger another buying frenzy, then we could see the market significantly gain liquidity wise. Again, let’s not forget that the word on Wall Street was that, for the most part, the Cryptocurrency frenzy was retail driven, and if people buy then could we not see similar movement play out?
We’re possibly going to see a very large ‘compression’ in the market. Mr. Hops commented on this saying, “I don’t think it’s going to be a bubble that’s just going to burst, and everyone is going to lose their money, but I think it’s going to be that all the coins and all the assets with very little use or value are going to get sorted out.”
Perhaps one thing is true, the market is a little over-saturated with new coins coming and going every day, but given how long Bitcoin has lasted, I think we can agree it’s still a little too early to imply a Cryptopocalypse.
This article is for educational and informative purposes only and should not be considered as investment or trading advice.