Expert predictions that Bitcoin will fall below $8K came to life this week after the leading cryptocurrency by market volume fell beneath the mark. High trader levels are nowhere to be found right now with Bitcoin’s price currently sits at $7,000. Although the daily average shows a slight gain, it’s clear that the past week has been largely unimpressive for Bitcoin, which is in a free fall.
The biggest cryptocurrency is over 12% down from the weekly opening and things are even worse with the monthly averages. Investors have lost more than $2,000 per coin over the last month while everyone waits the hyped Bitcoin explosion that might never come.
A Slight Surge
The good news is that there’s been a slight surge in the past 24 hours that saw BTC shoot over $600 to return above $7,000. Some experts see this as a positive sign and have already urged newcomers to invest now. We’d rather not be that bold, but the price increase in just a span of a couple of hours is certainly positive. Well, as far as Bitcoin positives go.
Price crashes after China’s comments on Bitcoin have made the market indecisive. With Bitcoin suffering from a monthly loss right now, things just haven’t been great for crypto investors and traders. The value of Bitcoin is expected to plummet once again, but major crypto figures such as CoinBurp CEO Peter Wood see it as a positive thing. According to Wood, this is not the first nor the last time Bitcoin’s value goes up and down – he sees it as a perfect time to invest.
A group of researchers recently tested the market’s lows and highs and believe that Bitcoin’s price floor could ultimately be destroyed. At the moment, the market swings like a pendulum back and forth just because it wants to find the sweet spot. In their own words, we are at the beginning of a long-term bull market that can break through the bottom at around $5,000. Even higher lows are expected, but it comes with a silver lining – they will be followed by all-time highs.
Can the Halving Help?
The upcoming Bitcoin halving or the reduction in mining rewards gives crypto traders high hopes that it could fix the price in the coming year. If history taught us anything, previous halvings have put a stop to bull runs and many believe the same will happen soon as well. However, people first need to understand that the halving is an uncertain event that might have a positive or negative impact on Bitcoin’s price.
Halving or halvening as it’s also known occurs to keep inflation under control. Bitcoin has a hard limit of 21 million with new miners and bitcoins entering the system at an unprecedented rate. The rate at which Bitcoins are created is cut in half every 4 years which raises the difficulty of mining.
This, along with other factors, could influence the price of Bitcoin, although nothing can be taken for granted. In the short run, experts are sure that the price will go down further and we’re anxious to see what the halving does.