The price of bitcoin could take days after a dip below the $ 6,000 to stabilize. At the moment many analysts are stating that this is an excellent opportunity to buy the cryptocurrency; while others say that the drop from its all-time high in December 2017 has not finished.
The chief strategist at Coinshare Melten Demirors finds it challenging to judge bitcoin only by its price history. On CNBC she suggested an alternative for assessing the cryptocurrency, namely the degree of adaptation. She said that both institutional and private investors should start paying less attention to the price and focus on the use of the digital currency.
Since its incredible rise in value, many analysist have started comparing the cryptocurrencies with the Internet bubble of the 90s, predicting a similar dark scenario.
Demirors also made the comparison; however, she insisted on another aspect too. The technical innovation.
In his opinion, the new technologies always need some time to put their wheels in motion.
She gave the examples of Intel, Microsoft, Apple companies which were the laughing stock of the 90’s created. Furthermore, for Amazon, it took nine years to recover from the burst of the dotcom bubble. While for Microsoft it took almost twice as long.
Demirors placed the “parabolic” rally from the Q4 of 2018 on the often found phenomenon in stock markets fear of mission out (FOMO). She hinted that after the market exuberance has started to drop to more healthy levels, the real business models with relevant use cases have begun to develop their products. And along the needed professionalism, the institutional interest in the crypto space has started to grow also.
Dan Morehead, CEO of crypto finance service provider Pantera Capital, had to say:
“It is very likely that it is the low point for the industry. My usual view is that he will return to his trend. “
He also thinks that the blockchain is “the most asymmetrical risk-benefit trade” he has ever seen. One can not lose everything, and bitcoin has the potential of a 25-fold increase in price. Thus becoming the first investment to bring high returns in a short period.
“For the last 60 days, Bitcoin has been a leader, much of it related to ETF speculation. But today you could see that Ethereum has fallen […] while a Coin like Stellar Lumens is still beating well. A 10-, 15-percent Bitcoin price rise caused by a short squeeze should also lift the others up again. “
Not everyone is so optimistic about the future of cryptocurrencies. In contrast, the CNBC presenter Jim Cramer thinks that bitcoin will eventually disappear.
“I think the tide has turned against it. […] I’m not saying that its time has run out, but I have a hunch that the Bitcoin sun is going down. “
While the public voices are probably expressing their opinions depending on their trading positions, at the moment the price of bitcoin is above the 21 monthly average, a sign that shows that on long-term the cryptocurrency has kept its most important gains. For the moment we cannot say the same thing about altcoins which have been “wrecked” by the latest shakedown.