By
Bena Ilyas
April 22nd, 2024
As Bitcoin recovers Monday’s price fall, analysts take a cautious approach towards digital currencies with crucial advice for traders and HODLers.
On Monday, December 3, Bitcoin again entered into a bearish phase falling by 5%. The one-day chart for Bitcoin on CoinMarketCap shows that the world’s largest cryptocurrency made a low $3832 in last 24-hours. However, Bitcoin seems to have made a sharp recovery in just the last few hours. At the press time, Bitcoin is trading at $4018 with its market cap just crossing $70 billion.
However, the cryptocurrency seems to be showing little strength at this time. Bitcoin is still lacking a convincing move to get back investors’ confidence. Furthermore, last week’s bashing by SEC chairman is adding to the market woes. SEC chief Jay Clayton said that crypto exchanges currently lack proper surveillance tools to combat the market manipulation. Hence, the agency is not willing to approve the Bitcoin ETF products anytime soon.
Moreover, the announcements made by big giants like ICE, Fidelity, and Nasdaq, has done little to restore the investor confidence. Charlie Hayter, chief executive of data company Cryptocompare told Forbes:
“The market has become tired of great expectations and has been beaten pretty bloodily.”
At the same time, we are getting a mixed bag of reviews from heavyweight investors and crypto market analysts.
Billionaire Investor Jim Breyer Predicts a Crypto ‘Nuclear Winter’
During a keynote session at the Fortune’s 2018 Global Tech Forum in China, billionaire investor Jim Breyer fired some shots. Breyer is a notable investor sitting on the board of giant organizations like Walmart, Dell, and Blackstone. Breyer expressed his bullishness on cryptocurrencies and blockchain. He said that he’s got a deep interest in crypto and DLT-based firms. However, he adds that at this time, “we are close to a nuclear winter right now with cryptocurrency”.
Breyer says that this year’s crypto market slump is not new to him. He says that he has previously seen such cyclical patterns in emerging tech markets as well as the internet and the AI industry. Furthermore, he points to the internet bubble of the 90s and how the industry evolved later.
He also said that such boom and bust cycles are absolutely “inevitable” and they “keep happening every decade or so”. Moreover, he adds that there’s a huge talent currently devoted to the development of the blockchain technology. Thus he’s quite positive on its future.
“So many of the very best computer scientists and deep learning PhD students and post-docs are working on blockchain because they have so much fundamental interest in what blockchain can mean… You don’t want to bet against the best and brightest in the world,” says Breyer.
Crypto Markets Experts Share Their View on Bitcoin
In a “Time to Buy Bitcoin?” talk from CoinTelegraph, senior market analysts Ronnie Moas, Willy Woo, Tom Lee, Mati Greenspan discussed the future possibilities determining Bitcoin price movements.
Naeem Aslam, the Chief Market Analyst at ThinkMarkets pointed at the regulatory concerns surrounding the crypto market. He said:
“Everyone knows that because regulators are not friendly. And as long as they maintain the same stance then that we won’t see that huge rally for Bitcoin… and we all know that.”
Aslam, a long-time crypto advocate also lauded the fixed supply of cryptocurrencies. He expressed his discontent with the latest Bitcoin Cash fork.
“We continue to increase the supply, [and] this is not really a good sign for the industry… I think this [fork[ goes against the major core elements and core values of Bitcoin.”
Aslam further adds that the bottom for Bitcoin is close-enough. On the other hand, eToro senior market analyst Mati Greenspan talked with a cautious note. He seemed a bit hesitant to take any side for BTC at this moment. However, for HODLers who believe in the long-term future of Bitcoin, he said just “relax”. While commenting about the Bitcoin bottom, Greenspan took a bit of optimistic approach saying:
“So Bitcoin has gone through various boom and bust cycles over the course of its short history… You do get a lot of newcomers into the market, and then after that during the retracement, and then the relaxation period. This is an excellent time for people to up there knowledge to learn more about the industry, more about crypto assets, more about how things work.”
However, he said that the boom and bust cycles are likely to continue until digital currencies have a full-scale adoption.