A year after peaking at $20,000, what should BTC investors do now?
One year ago, Bitcoin (BTC) hit its all-time peak of $20,000. Now, it have lost more than 80% of peak value. What would crypto enthusiasts do?
As of writing, the price of Bitcoin is around $3,700, up nearly 6 percent but it is still lower than 80% of peak value. Facing this critical situation, a number of investors are tense, almost afraid of making any move meanwhile others consider it is a golden opportunity to buy in.
It’s Time to Buy
Spencer Bogart, a partner at Blockchain Capital — a venture capital firm, during an interview on CNBC’s “Fast Money” on December 17th claimed that cryptocurrencies are now in bear market, creating a favourable opportunity for investors to buy.
Bogart also emphasized the significant advantages of crypto as a long-term investment can outweigh its disadvantage in price volatility in short-term. To explain further, the core concept of crypto and its advanced technology make it highly valuable as it can be effectively used in a variety of areas from healthcare, identity management, pharmaceuticals to supply chain and so on. Bitcoin network has also witnessed considerable improvement in terms of scaling with the launch of Lighting Network, making transactions become extremely both quickly and cheaply. Hence, crypto is still a key sector of the economy in regardless of its bear or bull market.
Not only Bogart but also many people are of the opinion that crypto seems to be particularly promising. There are numerous prestigious universities in U.S. such as Harvard, Yale, Stanford, MIT reported to make investment into at least one crypto fund.
According to a survey conducted by Blockchain Capital, 30% of millennials whose age ranging from 18 to 34 would rather invest in crypto than other channels like stocks or government bonds. As a partner of Blockchain Capital, Bogart also pointed out that there are more and more young talents wanting to work in crypto-related fields. Indeed, they have plenty of choices open to them including blockchain engineers, developers, traders, investors, writers and so on.
In addition, Bogart suggested that crypto market has been under enormous influence of investors and the value of Bitcoin might dump dramatically even lower to $2,000. From his point of view, this is a marvellous buying opportunity and people will have great regret for not buying Bitcoin at the moment.
The Estimated Real Value of Bitcoin
Thomas Lee, who is a Wall Street analyst and co-founder of an independent research company named Fundstrat Global Advisors co-founder, provides rational justification for Bogart’s opinion. Taking the number of active wallet addresses, market cap, daily volume, circulating supply and other components affecting supply into account, Lee indicated that the real value of Bitcoin is approximately between $13,800 and $14,800 which is substantially higher than current market price.
To summarize, despite of being in bear market, this is a favourable opportunity for investors to buy in. Be fearful or be greedy? It’s all up to you.
