Despite previous speculation, Bitcoin has dipped well below numbers most would consider comfortable, but it might be great news for investors. Thanks to latest news from China regarding blockchain technologies, there has been considerable selloff, pushing prices for the world’s biggest cryptocurrency ever downward. Considering the price differential between the $8,000 price point that Bitcoin was sitting at earlier this week and current rate of just over $6,500, it is not surprising that many are now running scared.
What triggered the major sell off?
The sell off that initiated the drastic drop in price was instigated by a warning issued by the Chinese government. In short, the president warned cryptocurrency investors that trading in cryptocurrencies could end badly. Authorities even went so far as to storm the offices of popular cryptocurrency exchanges. With the increased risk for Chinese crypto investors, many have cut their losses and gone into a holding pattern.
How much further will Bitcoin drop?
Many popular investment gurus, including the famed Peter Brandt, believe that Bitcoin’s recent drop in price may be a blessing in disguise. Although the situation may not be what many are hoping for, the long-run outlook appears very promising.
According to Brandt, Bitcoin is likely to hit lows near $5,500 by the middle of 2020 – a figure very close to where the coin sits currently. If Peter Brandt is correct, and if Bitcoin hits bottom at that point, the only way to go for the popular coin is up. Some suggesting prices in the 6-digit range.
Fuel for a comeback
Investors credit a couple of major factors for Bitcoin’s future rapid growth. One is the effect that Bitcoin’s halving will have on the mining market, and the other is the adoption of Bitcoin into the retail field. The latter will be responsible for huge growth, perhaps faster than anything we have ever seen.
With companies like Bakkt releasing apps enabling consumers to spend Bitcoin faster and easier than ever before, many predict that Bitcoin usage will go through the roof. Starbucks, for example, is already onboard with the project, as is Microsoft and many others. What that means is that Bitcoin will be just as easy to use as stablecoins like Libra and others promise to be.
Is it time to invest in Bitcoin?
If you are like us, you are always looking for the perfect time to invest in Bitcoin. It can be difficult to tell when the right time is, however, because the coin is incredibly volatile – especially in recent months. It appears that the long-term gains predicted for Bitcoin make it a smart move but there will be more loss in value before the big rebound occurs. China does not appear to be lightening up on its scrutiny of cryptocurrencies as it is now developing blockchain tech of its own, so bulls from China seem unlikely at the moment. That, plus a major push from some of the world’s largest companies to bring Bitcoin to consumers make Bitcoin’s future bright, indeed.