Hello fellow crypto enthusiasts, or should I say crypto survivors. Today I just wanted to address a question that I have been asked a few times recently, so lets get right to it.
Question:
Will Bitcoin recover to anything like its highest value again? What factors might contribute to this?
My opinion is that at some point it will, for me the question is not if but when? Bitcoin has been through this quite a few times, this is nothing new. The last time was when Bitcoin peaked at $1175 in December of 2013 only to enter a correction which lasted almost two years and resulted in Bitcoin losing 86% of its value from the peak. My feeling is that this is just a normal market cycle for Bitcoin and unfortunately whether we like it or not the rest of the crypto market is tied to Bitcoins' hip. Whatever Bitcoin’s price does most of the rest of the market follows, I really wish it wasn’t the case but for the most part today it is.
I remain very bullish long-term on cryptocurrencies, I feel that there will be another bull market, but we just must be patient and let this market cycle work itself out. My plan is to just wait and watch for now, at some point in the future when I feel Bitcoin is near a bottom or is in the process of forming a bottom, I will start accumulating cryptos again. I have a very long-term view of my crypto investments (years) so I try not to get too concerned about the day to day or even month to month price movement. Obviously no one likes to see their portfolio value shrink but I am still planning on accumulating a lot more crypto and I will now be buying at very low prices substantially lowering my overall cost basis.
As far as what factors will contribute to the next bull market? I believe that it probably will be a combination of quite a few factors. In my opinion, one will be organic growth in the crypto space as additional real purpose projects come online. Regulations could play a role to help investors feel a little more secure with their investments. I believe advancements in how we buy cryptos, how we transfer them, how we store them, and advancements in security will all help. At this time, it remains somewhat cumbersome for the average person to get into the crypto space, but I believe advancements will make that much easier. I think this is one of the most important areas that must be addressed in order to bring in substantial numbers of not only crypto investors but also crypto users.
As I said earlier, I also believe this is just another normal market cycle for Bitcoin. It is going to take time, but my feeling is that it will work itself out and we will see another bull market. Think about it, the same question you are asking could have been asked late in 2014 or 2015 and probably was. Back then people had no way of knowing if Bitcoin would ever recover, after all, they had just witnessed it lose 86% of its value. Talk about deja vu! Here we are again watching Bitcoin’s price continue to drop, now down over 80% from the high and most likely feeling the same uncertainty people felt back then and with many of the same questions.
For anyone that is interested here is a link to some market cycle analysis I did back in March.
Until the next article, Take care!
BigskyCrypto
Website: https://www.bigskycrypto.com
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