What is the future of Bitcoin after the crash down?
This question generates a lot of concern around the world. As you have seen in the previous article, the fall of this currency was a hard blow on the confidence that it could generate to its investors.
Huge price fluctuations have also prompted many digital payment companies to announce that they will soon stop processing bitcoin transactions. But can it be said that bitcoin has no future?
Many experts weigh in on the future of said digital currency. Tim Hockey, the CEO of discount brokerage firm TD Ameritrade, is an optimist about the future of Bitcoin.
Blockchain is the digital book that maintains records of transactions in bitcoin and other cryptocurrencies.
“Stocks related to bitcoin and blockchain have been more prevalent among our clients’ best-selling stocks since November,” he said.
Dan Ciotoli, a software engineer and blockchain analyst at research firm Bespoke Investment Group, told CNBC:
Transactions for purchases involving bitcoins should continue to be faster and cheaper. Thus, bitcoin will become a more viable form of payment, not just a momentum exchange of what he called “get-rich-quick investors.”
Not everyone believes that we are facing the final implosion of cryptocurrencies. “Corrections in the cryptocurrency market are a common phenomenon. It does not mean, however, that in the future prices will continue to fall”, explains another analyst MarketWatch.
What do traders say?
Speaking to Cointelegraph, technical analyst Eric Thies said he favors a bullish scenario in the short term. But if the price of Bitcoin rejects $ 10,000 again and falls below $ 9,000, a fall to $ 7,000 is a possibility in the third quarter of this year according to Thies:
“If BTC cannot claim the $ 10,000, the ceiling will eventually drop to $ 9.5k and potentially push us down to $ 7k over the summer.”
Similarly, Bitcoin trader Satoshi Flipper set a bullish pattern for Bitcoin to retest $ 10,500. But it would require BTC to hold above $ 9,400 and show strength in a cue support area.
Matthew Ficke, OKCoin‘s head of market development, told Cointelegraph that the perception of Bitcoin as a hedge against inflation and government influence is increasing, which may make Bitcoin more attractive:
“BTC’s pullback above $ 10,000 coincides with civil and economic unrest across the United States. Some argue that the environment reminds the market that BTC can hedge against excessive government influence. As stocks are close to pre-refuge levels, many seem to view cryptocurrencies as relatively attractive. “
The futures market that accounts for the majority of Bitcoin trading activity is a variable that can leave BTC vulnerable to a continued downtrend in the coming months.
However, there is no doubt that a big positive for Bitcoin is its increasing institutional adoption. Companies stopped processing transactions using bitcoin. On the other hand, other institutions will adopt that digital currency.