Bitcoin has dropped again and trading around $3,300, having lost over 47 percent of its value in just a month. Experts say this crash is healthy for the market while crypto traders are still bearish on Bitcoin price in the short term. But Bitcoin bull Tom Lee emphasizes it is currently undervalued.
Bitcoin Price Crash is Actually Healthy But Short-Term View Bleak
After seeing greens briefly, Bitcoin has yet again taken a hit dropping down to $3,200. In just a month, Bitcoin has fallen from about $6,360 to the current $3,311 and lost more than 47 percent of its value. The leading cryptocurrency is currently managing the daily trading volume of $4.35 billion.
However, pain might not be over as the constantly dropping prices are signaling towards more red incoming.
Crypto investor and trader, DonAlt is short on bitcoin as he says, “stay away from longs”. Popular crypto trader, The Crypto Dog is also bearish as he asks people who are feeling particularly bullish on Bitcoin to zoom out while saying,
“BTC lowest daily close year to date. Is there still a chance of recovery before more lows? Well, maybe. But I am not betting on it.”
According to Eric Ervin, the CEO of crypto and blockchain investment firm Blockforce Capital, this sell-off is healthy for the market,
“We think this is actually healthy. This really just takes us back to where we were in March or June of 2016 – about eighteen months ago – we had this big run-up and then this big blow-off, and now we have real people in the space building technology, building those on-ramps.”
According to Jani Ziedins of CrackedMarket, the hesitancy of buyers means slow chances of growth as he explains,
“Bitcoin continues to muddle along in the mid-$3K range. The longer we maintain these levels, the less likely it becomes that prices are oversold and poised for a pop. The public has largely written cryptocurrencies off as a fad and no new money is coming in. The lack of demand will continue to be a big liability.”
But Bitcoin bull Tom Lee who has now moved onto “We are tired of people asking us about target prices,” sees the prices as undervalued as he shares his Bullish view,
“Fair value is significantly higher than the current price of Bitcoin. In fact, working backward, to solve for the current price of Bitcoin, this implies crypto wallets should fall to 17 million from 50 million currently.”
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I am an entrepreneur and a writer with a bachelors degree in Computer Science. I manage the blockchain technology and crypto coverages at Coingape. follow me on Twitter at @arya_achal or reach out to me at achal[at]coingape.com.