Checking in with investors and analysts on the world’s most prominent cryptocurrency.
Perhaps Bitcoin has had worse weeks than this, but not in 2021. It’s painful like watching a long-distance runner stumble to see the price dip briefly to a 5-month low under $30,000.
Like any online community, Bitcoin supporters have been understandably emotional and full of correlations between the price drop and external factors — specifically regulatory concerns in China, the actions of institutional and panicking retail investors, concerns over the environmental impact, and some select, conflicting tweets by Elon Musk.
As Bitcoin loses nearly $1 trillion in market cap, there has been no shortage of rancor devoted to Musk in the cryptosphere, but with so many possible contributing factors, what is the real cause… and where is Bitcoin likely to go from here?
We spoke with some of the leading investing minds in crypto to get some perspective on these latest price movements.
Sanity Check with Crypto Market Experts
Brock Pierce is one of the leading investors and promoters in the cryptoworld. He is Chairman of the Bitcoin Foundation and co-founder of EOS Alliance, Block.one, Blockchain Capital, Tether, and Mastercoin. In an exclusive interview, Brock explained he thinks that the panic over the recent price drops shows people are focusing on short-term views.
“The movements in XRP and DOGE have been signaling in the crypto market a lot of public speculation, focusing on the wrong things. That is how it causes leverage and unwinds in the market. While it’s difficult and makes the market more fragile in the medium and the longer term, it de-leverages the system and creates a much more stable base for crypto and asset prices to rise from here,” Pierce said.
Pierce has raised more money in blockchain projects and cryptocurrency than virtually anyone else and seems to take a long view of the price adjustments in crypto.
“I think we have a high amount of new investors in the crypto space, who are inexperienced and trading completely speculative tokens, that are completely overvalued. When you have tokens such as DOGE and XRP, DOGE, in particular, having a higher market cap than Apple, obviously some of these things are overvalued and destined to crash,” Pierce said.
Pierce made the point that, although Musk’s tweets may have influenced the fortunes of BTC, no one person is the defining factor in any price movement.
“The market has been very focused on the tweets that Elon Musk has been making but no one person or celebrity or investor is what ultimately is going to be defining crypto prices long-term — whether they are a supporter or a detractor. Even with his latest tweet with diamond hands, he has shown to be very temperamental with his tweeting,” Pierce said.
As for Musk’s specific influence on the market, Pierce sees his impact as another evolving situation.
“The more-and-more (Musk) talks, the less credibility he gets. You saw that with his appearance on Saturday Night Live — when he mentioned DOGE it had an inverse effect on the price. People seem to be frustrated with him and it’s possible some of that may be warranted,” Pierce said.
Pierce sees a positive future for Bitcoin — but that doesn’t eliminate the element of uncertainty.
“.. I think we’re likely to see the price hit $100k before the end of the year — that being said, anything could happen,” Piece said.
Laurent Lamothe is a global thought leader, technology entrepreneur, and former Prime Minister of Haiti. In an interview with Benzinga, Lamonthe suggested this dip isn’t the end to Bitcoin’s historic bull run which began in 2020.
“I think the Bitcoin bull run is far from over and actually (I’m) very upbeat for the future. There is wider adoption and acceptance and today’s climate is conducive for digital currencies. Massive investments are underway,” Lamonthe said.
Bitcoin, You OK, Buddy? | Benzinga