Price Predictions Explode as Bitcoin Value PlummetsNovember 30, 2019
Late 2019 not only did not manage to bring about a massive bitcoin rally or even a modest jump in prices, but it did the very opposite. In November 2019, another epic value drop took place in the crypto market and the slump is still ongoing. During this slashing of value from the crypto market, the mass media expectedly entered another frenzy that piled up data of all kinds in a short period of time. Naturally, the conclusions about the cause of the price slump and its future trajectory remain as murky as ever.
But, like it often happens in the crypto community, total confusion did not stop many from making all manner of price predictions. As always, the range of possibilities is beyond the expectations of any traditional analysts or traders. Instead, they are running wild, covering both catastrophic and instantly lucrative scenarios, as well as more or less anything in-between. Here is an overview of some of the most popular theories out there at the present moment.
State of Bitcoin
The fact that the crypto market is in a slump demands no especially introduction. Currently, bitcoin is hovering in the area of $7,500. The market took a huge hit not long ago that brought the price down in a lightning-fast manner. The same occurred with the second-biggest cryptocurrency, ethereum and its token dropped well below $150 for the first time in months. Without a doubt, the reason for this is completely unclear.
What the public and parts of the media establishment began analyzing this slump, they quickly established a connection between the South Korean exchange calendar Update. The exchange was a target of a hacking attack where over $50 million in ETH have been taken. The same amount of money equates to about 342,000 ETH tokens. But, the tendency to connect events like these with the global changes and occurrences of any kind is an age-old tradition of mainstream media.
This time around the setup is not any different. Those who are not pointing to the theft of the tokens are pointing towards China and its possible crackdown on exchanges. However, the same crackdown arguably began years ago and it is still ongoing. In other words, nothing on its own produced the slump in the price and the same applies to all the previous sharp drops in crypto value. In spite of this, people continue to assess and process possible culprits, knowing all too well they will not be able to find anything akin to a silver bullet.
With the narrative of why the price buckled and fell, there is always the issue of where the bottom will be found. Is the current slump at its end or will the price nosedive further in the immediate future? No one can tell, being that the same principles that apply to find the reasons why the price fell apply to the issue when will it stop falling. Naturally, the bottom is always historically followed by a rise in the price when investors rush to push their money into a rising market.
This will happen again, but once more, it is impossible to predict when the same process will begin in earnest and how high will upcoming recovery takes bitcoin price or any other crypto. All this shows that the principles of the crypto market are fully known but the moment when they kick into full gear is anyone’s guess.
Today, many analysts who are generally bullish on bitcoin are predicting it is in an uptrend state even now. However, one popular analysis states something that will make man experts frown: the chance that bitcoin will reach the price of $120,000 for a BTC token. The same prediction also sees ethereum’s network token reaching a price of $5,000 at least in the same period. This would be the second cycle of a drastic rise in value.
The first one is the spike in the market that took place in 2017 – in this period, a BTC token climbed to a value of $20,000 while the ETH token sold for over $1,400. Of course, all of this was followed by the now well-known crypto winter of 2018. But, the 2022 theory, which would see the same super-price rise some five years after the first one, stipulates that the investors would be further emboldened to invest.
In the case of ETH, the $5,000 range would be around three times the old maximum price value. In the bitcoin case, the $120,000 would be six times the previous record. It should go without saying that estimates like this are beyond being completely baseless – they are nothing more than wishful fantasies. Compared to them, the moment when McAfee predicted in 2017 that BTC will reach $40,000 seems like a reasonable possibility.
Hopes on Steroids
The fact that predictions like this show that there is so much hoping going on in the crypto community that it compensates even the basic logic itself. Like in the realm of esports, there is the moment of hoping for something incredible. 2017 is one such moment and it shows that incredible things are indeed possible. Even the most conservative crypto analysts would not categorically deny something like this 2022 theory, just label it very, very unlikely.
However, the problem is that even those who want to see a BTC worth $120,000 do not understand that this would not help the global crypto cause. Instead, it would further influx bitcoin with this idea of it being a wild and unpredictable thing that can go to the moon all of a sudden.
The first round of price spikes did not bring millions to the networks and it did not make bitcoin a regularly used payment means. For better or worse, it remained in a similar position of slowly gaining users and adopters. In a strange way, the 2022 theory, even if proven true, would end in similar results, which are basically the thing we are seeing today in the post-2017 world.