Bears in the market are alluring the investors and exchanges while Bitcoin hash rate is showing no signs of slowing down. So, what exactly bears and bulls have to say?
Bitcoin bears alluring investors & exchanges
The bears first entered the market on September 6 and took a beating of over 14 percent as it slid down to $6,350 level. In tandem to the bitcoin fall, the crypto market ran the streets red with the loss of over $35 billion. Though the market has started seeing green since yesterday, it is still unstable right now.
However, this has fueled the appeal of cryptocurrencies. In Hong Kong, traders are actively seeking out crypto futures exchanges as demand for crypto derivatives has risen in order to gain leverage to multiply the returns, as reported by Chinese media channel.
Hong Kong is also seeing an influx of exchanges as recently crypto-derivative exchange BitMEX announced that it is taking residence on the entire floor of one of the city’s flagship and most expensive office buildings, Cheung Kong Center.
Also, EMX, a hybrid exchange will be coming to the city by the end of this year for which its CEO, Jim Bai shared:
“We are working through the process of getting fully licensed by the US Commodity Futures Trading Commission but will launch in non-US jurisdictions ahead of any regulatory approval there.”
Meanwhile, the Bitcoin hash rate is making a lot of headway as after rising 50% last month and taking a downward hit, it is yet again shown no signs of stopping as put by Kevin Rooke on twitter:
The breakeven BTC price for Hut 8 Mining is $2,334/BTC so far in 2018.
With BTC prices around $7000, this means they’ve been earning $4,000+ per bitcoin mined all year.
Mining is still insanely profitable, and the hash rate competition is showing no signs of slowing down. pic.twitter.com/mhVVTcwuT7
— Kevin Rooke (@kerooke) September 7, 2018
Bitcoin is currently down about 67% from its all-time high (ATH) but a bull market is still in the making as we covered in our previous article. So, is it the right time to buy bitcoin and jump into the crypto market?
Here’s what the bulls & bears have to say!
In the short-term, the chances of bull and bear run are divided as according to the experts the volatile nature of Bitcoin makes it difficult to accurately predict where the prices will head.
Recently, Forbes quoted the senior market analyst at eToro, Mati Greenspan, Bitcoin goes through “very distinct boom and bust cycles where it’s quite normal to see massive surges and sizable retracements.” This makes predicting short-term price movements a really hard task.
If we take a look at the bearish scenario, apparently, even after a large retracement, Bitcoin price still has the possibility of going even lower.
Jacob Eliosoff, a crypto fund manager says,
“I see no reason Bitcoin’s price couldn’t keep dropping or stagnating for another year or two,” before adding “the present bear market feels more like a natural reaction to 2017’s bull market than a reflection of any fundamental problems.”
As for the bullish scenario, Joe DiPasquale, the CEO of cryptocurrency fund of hedge funds BitBull Capital believes,
“There are lofty expectations around Bitcoin’s price rising in the future, especially as adoption grows.”
Another bull case comes from the CEO of CryptoCompare, Charles Hayter who points out the fact that a number of institutions are looking into crypto but for that groundwork needs to be laid down.
According to Greenspan,
“Overall, those who have adopted a more long-term strategy for investing in Bitcoin have seen the best performance. Therefore, many of our clients are deploying strategies like ‘buy the dip’ and ‘dollar cost averaging’ in order to scale into a long-term position. This way, they’re able to take advantage of the current discount and still save some money in case prices go lower.”
Bitcoin market certainly has a strong potential, no doubt as it has managed to capture the attention of the entire world which is only going to grow further.