Would $3,500 be A Yielding Point for Bitcoin?
Bitcoin is expressing an astounding price drop last week. According to data from Bitstamp exchange, Bitcoin fell as much as 10 percent and set a fresh low at $3474.73 on November 25th. Whereafter, its price started to rebound and hovers around $3,700 as of press time, nearly 40 percent drop from two weeks.
The recent Bitcoin market reminds the biggest one-week price drop since April 2013, when the cryptocurrency fell more than 44 percent, according to CoinDesk. Compare to its peak price of $19,209 in December 2017, the current low price has fallen by 80 percent, which refreshes old doubts about the soundness of bitcoin as an investment vehicle.
According to an estimate launched by F2Pool, one of the largest mining pool in the world on November 25th, several old bitcoin mining models, including Antminer S7/T9/S9, have reached their ‘shutdown price’— the Bitcoin price drops to a critical low price that mining cost has surpassed the profit which compels miners to shut down their mining machines to lessen losses.
Bloomberg indicated that the bursting of crypto bubble this year is mainly caused by several factors, including enhanced strength of regulation; the civil war within the crypto communities, and chaos in crypto exchanges. All these problems have intensified this week.
It is worth noting that $3,500 has also been recognized as a watershed of the future bitcoin trends.
Bitcoin analysts have been divided into two parties: one believes that $3,500 will becomes a yielding point, the other holds the opposite opinion.
Senior market analyst Mati Greenspan said that $3,500 is a good price for investors to enter the market. Coincidentally, Naeem Aslam, chief market analyst at Think Markets in the UK, said that $3,500 could be the bottom of Bitcoin. The regulatory environment is killing the bulls, and the bears are going crazy.
Forbes analyst Joseph Young also tweeted that: “Bitcoin at 3k, Ethereum at $100… If you missed out in 2014, 2015, 2016, and 2017, now is the time.”
The other side insists that Bitcoin price will continue to fall. News BTC analyst Aayush Jindal believes that $3,500 may not be the bottom of the current crypto crash, and the next phase of BTC price may fall to $3,200.
“In the short term, bitcoin prices may fall to $2,500 by January next year,” said Stephen Innes, head of Asia Pacific trading at Oanda Corp. He believes that bitcoin prices have not yet touched the bottom.
In a telephone interview with Bloomberg, Innes indicates that if bitcoin continues to fall, people would panic and choose to sell. At that time, cryptocurrency would not be as attractive as other asset investments. The price of gold will rise sharply, and there is a reverse relationship between gold and bitcoin.