Bloomberg Analyst: Bitcoin Can Drop to $900
CryptoBit News Today2 min read
Drawing parallels to the dramatic rise and fall of Amazon and the Nasdaq Composite Index around the turn of the millennium, an expert named Mr McGlone stated that Bitcoin could plunge to $900. According to Mike McGlone, Bitcoin's strong gravitational pull is toward $900, which matches both the average price since inception and the start of 2017.
Analyst's Prediction
McGlone explained that, "Parabolically increasing supply is the primary limitation to cryptocurrency market-price appreciation," particularly when considering Bitcoin's past supply and new fork coins. Mr McGlone noted, "I spend a lot of time reading about this, and the more research I do, the more bearish I get."
Severe Winter Plunge
During the final stretch of 2017 and into early January, Bitcoin experienced strong performance. It went from a high on December 17th of $20,000 to a February 6th low of $6,000. Having commanded a market value above $326 billion in mid-December, the coin shrank to $118 billion in the opening week of February. This sudden plunging of Bitcoin in January sent panic alarms all over.
As regulators intervened, Bitcoin and other digital assets like Ripple tumbled amid heavy sell-offs. Enforcement actions against ICOs by the Securities and Exchange Commission in late December and early January further frightened crypto investors. Around the same time, the South Korean government announced that additional cryptocurrency rules would be put in place. South Korea represents a major portion of the global crypto market, while an escalating crackdown by Chinese authorities also harmed market performance.
Market Reprieve and Outlook
Cryptocurrency received brief relief when senior US regulators testifying before a Senate committee advocated for stronger oversight. Although the testimony of the SEC and CFTC leaders before Congress contributed to subdued trading, the Senate did not introduce any harsh new measures. This provided the cryptocurrency market with positive momentum that remained intact despite a ban issued by the Central Bank of Thailand.
Following February 6, the two leading rival digital currencies, Bitcoin and Ethereum, staged major rallies. Bitcoin climbed to $8,720, representing an increase of nearly 50 percent above its annual low of $6,000.
Nevertheless, trading charts on February 13 signaled a bearish trajectory for Bitcoin, with 100-day moving averages showing depressed prices and sellers dominating the market.
