Bitcoin is slowly slithering down in value after reaching a record high of almost $20,000 a year ago.
The markets have wiped another 3.5% of the leading cryptocurrency’s value, sending the price down to $3,360 and it would take a brave investor to put money on where Bitcoin is likely to go next.
The trend since December last year is down – but then the meteoric rise that saw Bitcoin zoom from less than $1,000 to $20,000 lasted only from March to December 2017.
In the previous eight years, Bitcoin had failed to burst through the $1,000 ceiling.
This year has been a disaster for cryptocurrencies – including Bitcoin.
Bitcoin will go up
In 12 months, Bitcoin has lost 77.61% of value – equivalent to $11,690. Market cap has more than halved to $58.78 billion.
Imran Wasim, a financial analyst at AMSYS Group, is not at all downbeat about the future for Bitcoin.
“It has dropped in price, this is good,” he said. “A lot more money is going to come into Bitcoin, Bitcoin will go up around $30,000-$35,000 this year – next couple of years? $100,000.”
However, holding Bitcoin was likened to buying a lottery ticket by former international Monetary Fund economist Kenneth Rogoff.
“I think Bitcoin will be worth a tiny fraction of what it is now if we’re headed out 10 years from now, I would see $100 as being a lot more likely than $100,000,” he said.
Time to exploit volatility
US cryptocurrency exchange Coinbase runs a chart that shows how a bundle of five cryptocurrencies have fared over the past year.
The exchange says if an investor had forked out $100 on cryptocurrency a year ago, the outlay would have gone down by $78.76 to $21.24.
Recently, Nigel Green a cryptocurrency backer and CEO of one of the world’s largest banking and financial services firms for expats advised investors to buy to exploit volatility in the market to make a profit.
Even though prices have dropped in the past week, the market has seen Bitcoin recover to bounce back.
“Savvy investors understand that digital currencies are the future of money and, as such, they will be capitalising on the lower prices in order to build their portfolios and shore-up their positions,” he said.