Is the weekend’s crypto crash a long-term nightmare?
Both Bitcoin and Ethereum experienced a horror weekend. Bitcoin suffered a 15.5 per cent nosedive over four days, to a low of US$36,665. Ethereum also dropped by more than 15.5 per cent, to hover at around US$2,500.
The great concern is that further sales of both seem likely, and once Ethereum breaks through the $2,500 support level, it could lead to a downswing as dramatic as 64.7 per cent.
Bitcoin, meanwhile, is at risk of diving to $28,000. What is fascinating about that number is that it is exactly what trader and analyst, Peter Brandt, predicted earlier this month.
The Bulls In A Bear Market
It would be easy to be very doom-and-gloom about the current market and likelihood that there’s some more sliding to occur yet. And yet, there are evangelists that remain very bullish about what’s going on, even suggesting that investors will see the opportunity in the market soon.
Nigel Green, deVere Group CEO, put out a statement arguing that Bitcoin is not going away. “Institutional investors and well-resourced individuals will be moving to buy what they are currently regarding as ‘discounted’ Bitcoin,” he said in the statement.
“Strike, a fintech payment processor for the Bitcoin Lightning Network, is now integrating with BlackHawk Network, the largest payment processor in the world.
‘This allows Bitcoin to enter the physical locations of retail outlets and hospitality venues, which make up 85 per cent of all U.S. transactions.”
Green argues that the “foundations” of Bitcoin remain strong, as a “digital, borderless, viable, decentralised, tamper-proof, unconfiscatable monetary system.” Above and beyond any peaks and troughs in the market, this makes Bitcoin an inevitability in our future, he said.