Bitcoin falling? Big investors are no longer afraid of it. How perception about the world's most important cryptocurrency is changing.
Avi Salzman, editor-in-chief of the magazine Barron, a few days ago published a report in which he took stock of the behavior assumed during the recent drop in Bitcoin prices, underlining how investors and executives no longer fear (or do so with less fear of the past) the large fluctuations of the cryptocurrency, and that on the contrary they are on average increasingly convinced that the virtual currency can in the future inevitably replace the traditional currency.
In the last five months, the valuation of the cryptocurrency market declined by more than 55%, compared to its peak, going from $ 829 to $ 372 billion. In January, at its top, the valuation of the cryptocurrency market had in fact reached almost a trillion dollars but, since then, the prices of most cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, EOS and Ripple have more than halved. Of course, as the valuation of the cryptocurrency market has declined by wide margins, an increasing number of investors have started to lose interest in the market, as has confidence in the short-term rally of both the main and emerging cryptocurrencies. But regardless of the massive correction, large investors are still extremely optimistic and bullish.
Bitcoin will grow in the long term
In particular, many analysts predict that the price of Bitcoin is destined to assume long-term growth as Wall Street investors will feel more comfortable with this asset class.
Earlier this month, BKCM founder Brian Kelly stressed that he was "shocked" by the fact that the market had not adequately reacted to the entry of the New York Stock Exchange (NYSE) and JPMorgan into the cryptocurrency market. If the two major institutions entered the market in January, when the cryptocurrency market was at historic highs, it probably would have helped push the cryptocurrency market beyond the trillion dollars.
Erik Voorhees, CEO of ShapeShift, said that it is inevitable that cryptocurrencies like Bitcoin and Ether will replace legal currencies like the US dollar in the future. Voorhees also said that he did not believe that financial companies will try to "divert" from this path, since basically "companies chase money", whatever form they have.
How the Bitcoin price will evolve
As regards the Bitcoin price, the expert says that in the short term it can drop below $ 8.000, potentially in the low end of $ 7.000. It could also demonstrate a sudden surge in momentum and rebound in the $ 9.000 and eventually $ 10.000 zone.
No investor or analyst could predict where the price of bitcoin will go in the short term with absolute certainty. But big investors are convinced that cryptocurrencies are here to stay and compete with traditional currencies and assets such as the US dollar and gold. And perhaps this is what really matters.