Bitcoin (BTC) went really down sinking below $10,000 price level. The leading cryptocurrency has pulled other top-20 coins down, with none of them reporting gains. However, analysts agree that this is a time to buy.
This year is probably the last one to get Bitcoin under 10K, at least if you ask Novak Svrkota, the crypto fund manager. He said that he is looking for re-entry targets about $6000. However, he advises buyers to be patient until the end of this year. He said:
“Next year I expect new all time highs and in 2021 we are probably going over 100k if the next world economic crisis doesn’t strike before.”
Also, he added that the bullish trend was spiked by Tether:
“No fiat money went to crypto during this phase. Traders were just converting Tether to BTC. Earnings they made will cover that 860M frozen by NY attorney general.”
Just for a reminder, the New York Attorney General’s office has alleged that crypto exchange Bitfinex lost $850 million and subsequently used funds from affiliated stablecoin operator Tether to secretly cover the shortfall.
As said, NYAG Letitia James announced that she had obtained a court order against iFinex Inc., which operates both Bitfinex and Tether, ordering them to cease violating New York law and defrauding New York residents.
James said that an investigation by her department determined that iFinex “engaged in a cover-up to hide the apparent loss of $850 million of co-mingled client and corporate funds,”
During last 24 hours, BTC price lost 11.09% and is trading under $9,900 at the time of writing. On its weekly chart, the coin has remained volatile, surging to $13,756 on June 26 and slumping to its current price as the lowest mark according to holdcalc.com.
Parallel to this site’s rolling statistics, a cryptocurrency market analysis published by twitter handle CL on June 24 suggests that bitcoin has entered the so-called “stealth phase” of its renewed bull run.
Let’s not forget that BTC has been profitable as an investment 98.2% of the days since its creation. And if we count 3,830 days back — to January 4, 2009, one day after the coin’s Genesis Block was hashed — the data suggests that on 3,671 of these, it was profitable to buy BTC as an investor.
Coin360, on the other hand, shows that Ethereum (ETH) has experienced a drop by roughly 6% on the day to trade at $277 at press time. The second largest cryptocurrency dropped more than 12% on its weekly chart, while in terms of its monthly performance ETH is 2.87% in the green. Svrkota says that buyers could easily buy exactly 32 ETH because in the next two years it will go over 1000$.
We already wrote about Chainlink (LINK) that is still among best performers. However, it has registered a double-digit loss by nearly 10% to have its current price at the $3.27 mark. Litecoin (LTC) is also down by 7.75% and is trading at around $115 at press time.
Be it as it may, since its rally in early February, Bitcoin has been pretty much unstoppable, brushing off major FUD, a hack, and more without so much as a minor correction. A major break from bear market lows in April rocketed Bitcoin from its lowest depths at $3,150 over 340% to $13,900 where it met powerful resistance and subsequent violent rejection.
General partner at the Blockchain Capital, Bogart Spencer says that he believes that an asset of this class is expected to behave like this as there is a fixed supply but a variable demand.
He explained that other stores of value such as gold and some pieces of art also have a fluctuating price. Moreover, the people that buy pieces of art or gold keep it secured and guarded much like Bitcoin and other cryptocurrencies. Bogart also believes that in the future Bitcoin will not be used as a method of payment but rather as a store of value.
