Until the Bitcoin Cash hard fork, the crypto market was stable for almost a good two months. Despite testing the $6000 level resistance multiple times, bitcoin had not gone below it significantly. In fact, reports even suggested that the phase which bitcoin went through during that time was one of the most stable phases of the cryptocurrency. Altcoins, following bitcoins suit, had shown similar price movements.
Following the Bitcoin Cash hard fork on November 14, things have looked very bleak in crypto. At the time of writing, Bitcoin and Ethereum are trading at $4319 & $122.71 respectively. The market capitalization has also fallen down to $139 billion dollars. In the wake of the recent market crash, the CEO of cryptocurrency trading companies Genesis Trading and Genesis Capital Trading, Michael Moro, has said that Bitcoin could bottom at $3,000 in an interview with CNBC Nov. 23.
He stated, “You really won’t find [the floor] until you kind of hit the 3K-flat level.” Since the $4,000 level was tested twice in the previous days, he is of the opinion that BTC price can stabilize in “the mid-3s”.
He also went on to say that long-term investors are better poised to handle the slump, “This is about the fifth or sixth 75 per cent-plus drawdown that we’ve seen in the 10-year history of Bitcoin. And so if you have that [long-term] lens, I don’t believe institutional investors really ultimately care where the price of Bitcoin ends in 2018, simply because they’re looking at things three to five years out.”
When asked about what this means for miners, he suggested due to the drop in hash rate, the cost to mine is expected to go down.
A few days ago, Lou Kerner, who is a partner at the venture capital firm CryptoOracle had compared the current market crash to the dotcom burst in the early 2000s. He was of the opinion that strong coins should be viewed like the big corporations that survived the dotcom crash.
In the meanwhile, BitPay COO Sonny Singh has made a bold claim stating that bitcoins price could be back to $15k to $20k by the end of 2019 during an interview with Bloomberg Nov. 22.
He stated that expects the next big crypto wave to come when mainstream financial giants like Fidelity and Intercontinental Exchange (ICE) start to launch their crypto-based investment products in 2019.
He suggested that the entry of the financial giant could take Bitcoin’s price to as high as $15,000-$20,000 by the end of 2019.
Apart from that, he also pointed out that structural changes in the crypto market, like that of U.S. crypto exchange and wallet provider Coinbase and crypto bank Silvergate gearing up for possible initial public offerings (IPOs)
He also drew a comparison between Bitcoin and altcoins, saying that: “There’s a night and day difference between Bitcoin and everything else. Bitcoin is the under pound gorilla, it’s the one that has the mass network effect… [the one] the traditional financial incumbents are building products around. Other [crypto assets] […] I don’t know what’s going to happen to them.”
Stating that the “the ICO market is pretty dead right now,” Singh said signs of increased intervention from the U.S. Securities and Exchange Commission (SEC) do not bode well for the future of the token space.