Depending on who you believe, this might just be the last chance to purchase cheap Bitcoin, relatively speaking. Since highs of $20,000 just a few short months ago, the entire market has been in a decline. There have been a couple of short reprieves that toyed with investor’s emotions, as BTC flirted with $10,000. Outside of this though, it has been a market dominated by bulls. Currently in the midst of another downswing, the market is struggling to stay above $7000.
This bear market has a suspicious feel to many. A growing number of traders are claiming manipulation through a number of means. The manipulation is being connected with the launch of the futures market. The launch of the futures markets was Dec 17, 2017. The all-time high for Bitcoin was Dec 17, 2017. We have been declining since. People do not see this as a coincidence, and believe it is due to manipulation through spoofing, washing, and other means. It was reported just recently that the USDOJ actually launched a criminal probe into whether market manipulation has taken place.
With this being said, there is an unwavering optimism still prevalent with many in the industry. Even in recent days, we have seen multiple high profile individuals make brazen statements regarding where they see the price of BTC going in the short and medium term.
Love him or not, John McAfee is an influencer in the industry. You don’t need to agree with his tactics to accept that what he says/does results in a market reaction. Just recently, McAfee made a short term prediction about the state of BTC, tweeting, “My short term price predictions: in a major dip, with nearly everything dropping, the price of Docademic doubled since my prediction. The market will turn before June 12th and my predictions will hit. My algorithms predicted Trump’s June 12th date. They have never been wrong.” Attached to his tweet, he had a letter with predictions for 5 coins. The top two he touched on were BTC (which he predicts will hit $15,000 in June) and GNT (which he predicts will hit $5 in June). These are bullish statements to say the least.
He is not alone in his beliefs, though. Co-founder of Fundstrat Global, Thomas Lee, is a common face seen on CNBC. He is someone that is often right, and typically listened to when making evidence-based predictions on market momentum. Lee has gone on record this year stating that he believes BTC will absolutely reach $25,000 in 2018. His top two indicators for this were the production cost of BTC –people are heavily invested in mining, and will not sell below what is costs them to create- and the entrance of institutional investors. We know these investors are on their way, but they have not arrived yet. On this topic, Lee stated, “Institutional investors have gained a lot of interest and they haven’t really come into crypto yet because there’s still some regulatory uncertainty. But that ultimate allocation into crypto as an asset class is going to be a powerful reason why bitcoin rallies.”
They are only two of many individuals that believe the current bear market is not long for this world. Mitigating risk and relying on dollar-cost-averaging is always a smart idea in volatile markets. However, if these bullish sentiments come true, the current price of roughly $7500 will look awfully good in the rear view mirror.