Bitcoin To Hit $3,500 Before Making A Comeback To $5,000: Analyst
There is never a shortage of advice on investing in cryptocurrencies, and with the market crashing hard recently, many investors are seeking the advice more than ever. While some experts have indicated that it may be the most opportune time to get into crypto, others have warned that it could go down even further before finally making a rally. According to one analyst, Bitcoin is yet to bottom out and he expects it to drop further before it makes a rally. This is definitely not the kind of informational turkey crypto investors want to curve this Thanksgiving.
Bitcoin Will Bounce Back Like Amazon After Dot-Com Bubble
At press time, Bitcoin had started to show faint signs of a recovery, gaining 1 percent in the past 24 hours to finally get back over $4,500. Earlier in the day, Bitcoin had been down to below $4,200 on some markets and therefore the gain, however small, can’t escape unnoticed. However, according to one analyst, it could once again regress, and this time even breach the $4,000 support level.
Speaking to MarketWatch, Jani Ziedins stated that the panic sellers will continue selling which will drive down the price even further. The Cracked Market analyst explained:
Look for the selling to continue over the next few days, but a bounce off of $3.5k-ish that returns to $5k is likely. While that doesn’t sound like a lot given the latest tumble, a bounce from $3.5k to $5k is a nearly 50% payout for just a few days of work.
Meanwhile, one crypto investor revealed that the lack of underlying value and mainstream use of cryptocurrencies is the reason for the downfall. Lou Kerner, a partner at New York-based crypto investment firm Crypto Oracle stated that he is however very confident that cryptos will bounce back soon enough.
Speaking about Bitcoin on CNBC, he stated:
Bitcoin, we think in itself, is going to replace gold eventually. Gold is an $8 trillion industry. […] I think it’s a store of value. I think it’s the greatest store of value ever created. It should surpass gold over time. It’s not going to happen overnight.
Kerner dismissed the crash as a normal market phenomenon, one that happens in any other emerging market. And if Amazon survived its post-dot-com crash to become the global giant it is today, so will crypto.
If you go back to the Internet (dot-com) bubble, which I think is what a lot of us in crypto look at for direction, Amazon, arguably one of the greatest companies in the history of mankind, was down over 95 percent over two years.
Kerner was referring to Amazon’s journey in the late ’90s when it saw its share price skyrocket to around $300 in less than two years, only to crash to $6 per share in 2001. It has since then been on an upward trend and at $2,000 a share in early September this year, it became the second U.S company after Apple to be worth more than $1 trillion.
Amazon’s roller-coaster ride is pale in comparison to what the crypto market will go through in the next decade, Kerner concluded. Investors must therefore brace themselves for the road ahead because as Kerner put it, “Nobody likes being down like this. But this is what investing in crypto is all about.”
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by Steve Kaaru via NullTX