Experts predict an upcoming “bullish” trend for bitcoin
Since Bitcoin sank heavily in May and its price dropped to $30,000, many market analysts began to make statements about the “crypto winter” and speak negatively about volatility. However, some experts note a positive outlook for the growth of the coin.
According to the founder of ARK Invest, Catherine Wood, the company actively monitors market trends and pays special attention to bitcoin futures. Now everything points to the increased volatility of the coin, but in the long term, there is positive growth.
At the moment, bitcoin futures are trading at a discount so that we can see high volatility. It is impossible to say whether the price will increase or decrease if only this aspect is considered, but the prospect can be seen from other examples. According to our projections, the rise in the coin volatility will be positive, and the value will grow.the expert said.
She also noted that despite the capitulation of most short-term holders, many strong investors are still in the game, which is clearly in favor of bitcoin. According to ARK Invest, the share of long-term holders of bitcoin today is at a record level - 67%. However, the expert recommends being careful with investments, especially after the collapse of Terra. She notes that this drop was tangible for the entire industry and attracted excessive attention from government regulators trying to control as many aspects of the crypto market as possible.
In turn, MicroStrategy CEO Michael Saylor said that most people do not understand the fundamental essence of bitcoin and are trying to make money in the short term.
The essence of bitcoin lies in a long-term investment. There is some depreciation, but it is temporary. Most people don’t understand how difficult it will be to create something better than bitcoin.said Michael Saylor.
He is also unsure about the onset of “crypto winter”, because, according to him, the volatility of bitcoin is very high, and it makes no sense to react every time to an increase or decrease in the price if the assets are in a long-term game.
I don’t know whether the trend is bearish now or not, but I can say for sure that this is the third time we have had this in the last two years.Saylor said.
He recalled that in April last year, bitcoin was worth $60,000, and by July that year, the price had decreased by half to $31,000. In the same way, in November 2021, the exchange rate returned to 60,000, and after that, it reached a record $69,000. Now the exchange rate has dropped to 30,000 again.
Note that the developer company MicroStrategy is one of the largest bitcoin holders. Currently, the company owns, including subsidiaries, about 129,218 bitcoins.
In addition, for the first time in 63 days, Bitcoin was able to close its 7-day trading period better than it opened.
