Bitcoin sinking shows no signs of stopping as it dropped below $7ooo and currently floats in the mid-six range. The new wave of speculation broke out along with some panic selling as people are predicting another doomsday for bitcoin, the world is ending, skies are falling. But is it really like that? Is the buzz of bitcoin dying out or is all of this just normal market behaviour?
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In times like this, you should just zoom out and look at the broader picture. It is true bitcoin lost 70% from all time high in only six months and it is also true it often sharply dips another 5-10% on daily basis, BUT it is also worth noting: bitcoin was around $2000 this time last year. Turn another page and you will see it was only $750 back in June of 2016. So, if you look a year by year progress – this price range is more healthy and suitable level for the long-term view.
Current prices are healthy for the long-term success
Commenting on possible causes for the recent nosedive Kyle Samani, crypto hedge fund manager told MSN Money
“I don’t think this is driven on any particular news, just the general downtrend after the 2017 run,” before adding;
“A lot of people who bought at $9,000 in April are realizing that they’re not going to break even anytime soon, and are instead trying to get out.”
This bubble pop, prolonged bear market or just a return to realistic valuations – call it however you want, is a good for the industry and the future of the technology in the long run. It is a natural repellent for scammers, snake oil sellers, get rich quick schemes as they will move to something more profitable for them and leave crypto and bitcoin to enjoy a steady, healthy and proper growth predicated on a sound tech with real value for people around the globe.