Bitcoin has been in red the entire day having stuck to just above $7,350 price level. Experts are saying it hasn’t seen the worst yet which just might be coming. However, regulatory clarity, better understanding and continuous development have the investors interested in this “digital gold”.
Bitcoin bulls take a backseat, after-effects & hope still strong
At the time of writing, Bitcoin has been sitting at $7,352 with a loss of 1.58 percent in the past 24 hours. The world’s largest cryptocurrency by market cap is still managing to be above $7k despite the red.
As for the entire cryptocurrency market cap, the surge in prices had it risen to $298 billion. However, as the mini bull came to a close, or at least seems to be right now, the market cap has come down to $279 billion.
Bitcoin price might have dropped but its dominance is certainly at it highest at 45.30 percent. And as put by Ran NeuNer, the CNBC Cryptotrader host and founder of Onchain Capital, the new money market entered the market with the surge.
Given the increased dominance percentage of Bitcoin and continued surge till yesterday despite serious losses in other cryptocurrencies, this new money seems to move into Bitcoin.
But worst is yet to come
Just a few days back, one of the bitcoin experts stated
“I don’t actually think we’ve seen the worst. I would like to see us test $5,000 to really see if we put a bottom in.”
Though he sticks to his $50,000 by the year-end, with the prices already starting to drop, Bitcoin just might hit its bottom and sink to $5k level. However, as big names are showing their interest in the cryptocurrency market, traders, investors, and analysts firmly believe it is here to stay.
Being around for the past 10 years, the understanding and regulatory clarity are only increasing. But it has a long time to go because if take a look at it in comparison to other mainstream asset classes, it is a really small part of it despite having created billions in value.
Recently, Bitcoin has been also compared to gold and even termed as “digital gold” but actually it is just about 2 percent of the entire gold market. One big advantage of Bitcoin here is its fixed supply that raises its potential to even that of gold.
Alexander Mann, Associate at Concentric shared with Express.co.uk,
“The joke doing the rounds in the crypto community right now is that the world’s first trillionaire will well be a billionaire who has invested a significant % of their wealth in bitcoin.”
From an investor’s point of view, they have come to understand bitcoin and the crypto market, seeing its potential and the continuous development that is being made in their technology and network along with the profit factor seems to outweigh their fear of risk.
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Passionate about Blockchain and has been researching and writing about the Blockchain technology for over a year now. Also holds expertise in digital marketing. follow me on twitter at @sagar2803 or reach out to him at sagar[at]coingape.com