Since its introduction in 2009, Bitcoin has gone on to become the first established cryptocurrency. Bitcoin reached a peak of $19,535 in December 2017 and started the 2018 year at $14,112. However, it has suffered a significant loss and is now trading at $6,265 on Tuesday according to CoinMarketCap.
Since the start of 2018, the cryptocurrency has lost 50% of its value. According to some industry experts, Bitcoin is likely to fall further whiles others believe it won’t.
CEO of crypto exchange CoinMetro, Kevin Murcko says he doesn’t believe Bitcoin will fall below $3,000 because the cost of Bitcoin mining determines its price. He went on to say, “Mining carries a cost, and large-scale miners won’t sell below that cost. Bitcoin mining is currently profitable down to a price of about $3,000 per Bitcoin, that price represents an approximate market bottom.”
Murcko also added that for the cryptocurrency to rise in value, there have to be real-world cases where businesses and people use Bitcoin for transactions.
Erica Stanford, co-founder of CryptoCurrencySimplified, also said Bitcoin cannot drop any further. She added that “Institutions have had every chance to drop the price down further had they wanted to crash Bitcoin even more.
“There has been strong support at around $5800 – every time Bitcoin has gone below $6000, it had been brought straight back up.”
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Another expert, Mike Rymanov, CEO of Digital Securities Exchange (DSX) also believes Bitcoin will recover very quickly. In an interview with Express.co.uk, he said, “Over the coming months, I expect we’ll see the market continue to attract more professional players which will subsequently lead to much more civilized market conditions, and in my opinion, there still remains a real possibility of hitting the £10,000 mark by the end of the year.
“Furthermore, we expect other financial institutions will continue to look for ways to provide robust custody solutions for cryptocurrencies.
“Once these come into play, those investors who are currently skeptical or who have security concerns will be able to invest securely.
“In the medium to long term, it’s likely this will add to the consistently upward trend as we head towards £20,000, however when, and if, we reach that point is difficult to predict.”
Do you believe Bitcoin will drop further or not? Share your views with us in the comments below.