Bitcoin has gained modestly in the last one week. A Chinese billionaire believes price has already bottomed and it's time to stock up Bitcoin again.
February 15, 2019 | AtoZ Markets - Bitcoin, over the last 14 months, has been on the bearish side, losing more than 80% of its market value. The entire crypocurrency market has also lost more than 80% of its value. However, prices have stabilized and headed upside in the last 6-7 weeks. Each time price is experiencing a bounce like this, the most frequent questions asked by crypto market participants and would-be participants is this: ''has price bottomed yet?''. During this period also, there has been a change of expectation from market analysts which is now leaning toward a strong market recovery. However, there are still a large number who believe the current rally is just another bounce that will be followed by further dips. The fundamental challenges faced by the market - scalability, institution, regulation, security- are still largely unaddressed.
Chief among the bullish enthusiasts is Zhao Dong, a Chinese billionaire, who is one of the world's largest over-the-counter Bitcoin traders. Zhao has said that now is the right time to invest in Bitcoin if only one can be patient. He said:
"For most people, if they don’t pay attention to bitcoin now, they won’t pay much attention to most of the time, so for them, only how many tens of thousands of bitcoins will break them will be noticed again,". He said further "If you and I believe in the future of bitcoin, so it is best to hold as much as possible when nobody cares."
Bitcoin To Hit $50,000 in 2021?
Zhao is an ardent believer of the future of Bitcoin and digital assets. He once predicted that by 2021, Bitcoin price will hit $50,000. Meanwhile he is not on this alone. Another billionaire from Hong Kong Li Ka-Shing added to his Bitcoin stockpile earlier this year. Zhao added that it won't be easy to make easy money now unlike how it was before 2018. He therefore advised investors to be patient.
"In the bull market, I don’t persuade people to buy bitcoin, because it seems easy to make quick money but in fact it is not. Now [in the bear market], I start to talk people into buying bitcoin," Zhao added.
Bitcoin caught attention when it hit $20,000 late 2017 after starting the year a bit above $1000. The big boom was as a result of market expectation that institutional investors will join and the market therefore got overvalued. In 2018, however, when the expectations were not met and regulatory bodies started raising their heads, prices started crashing. From almost $20,000, Bitcoin dropped to $3,100 in 2018. Currently, price has gained modestly to $3,600. Other major and minor cryptos followed in this manner with most performed even worse than Bitcoin.
The market expects Bitcoin ETF with CFTC to be approved by the U.S SEC. This will boost the market, together with the highly anticipated Bakkt Bitcoin Platform which is being developed by the NYSE. Some other giant companies like Microsoft have disclosed their plan to be involved in the crypto market in one way or the other. Are better years ahead as predicted by Zhao?
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