Stability tends to be something that most markets and frankly people crave, however it is more of an elusive goal at times, and Cryptocurrency markets certainly feel that way at times. But that doesn’t have to be the case necessarily. Major analysts within the financial securities industry and Cryptocurrency world have declared that they can now see the exact method that the Bitcoin currency will rectify itself and create a relative price equilibrium in the market.
The Analysts Prediction
However, if you were expecting the price to stabilize next week, then, unfortunately, the news will be disappointing. Mr. Greenspan, a senior analyst, currently working at eToro has stated that Bitcoin may not be receiving relatively steady market value for quite a Few More Decades to come. One of the main reasons contributing to this lack of optimism is due to the fact there are still many people who are regarded as ‘whales’ in the market, or who came in early and have generated large stores of Bitcoin.
These large stores of the currency have thrown off the invisible hands of the market inhibiting the forces of supply and demand abilities to adjust the price to a more favorable amount. As the general perception of Cryptocurrencies improves and people begin using it more readily in their daily lives, the penetration level of Bitcoin will exponentially increase. Once this has incurred the market will on its own begin to move towards equilibrium price levels, however, at this point, the market is far too narrow and too few people have collected the vast majority of the currency expanding or collapsing the price on a whim.
Last week Friday, Bitcoin began to trade below $8 000, which it had not done since April, prompting many to fear of a possible return to a Cryptocurrency crash. Its previous high was over $9 000, the current influx of dips within the market is bleak in comparison to the Cryptocurrency booms within the final quarter of 2017 and the first quarter of 2018 that the world fawned over.
The price of Bitcoin managed to leap from $4 000 right through to just over $19 000 from early October through to December 2017. However, despite the fact that at present Bitcoin is staggering under $8 000, companies have not lost hope within the currency, in fact, they are predicting a boom. The CEO of Bitmex, Arthur Hayes has predicted that by December of this year the price of Bitcoin will have soared to $50 000 despite current downward market trends.
The Voice Of Bill Gates
The world of Cryptocurrencies has been facing many, many negative comments at this current point in time, with even Bill gates throwing in his two cents. Bill Gates has stated that he does not believe whatsoever in Cryptocurrencies and that he would rather bet against it than put any money within the crypto markets. Adding that if it were possible for him to ‘short’ the currency, then he gladly would, however, he doesn’t as yet see an easy way to do it.