Bitcoin (BTC), the most significant digital currency by market cap; has been enduring a considerable drop in its value due to several events in the market.
Remember that BTC once reached a market cap of over $1 trillion; reached an all-time high of over $63,000 earlier in May but has since then lost over 50% of its value. The cryptocurrency is currently trading at about $32,666, up 1.66% in the last 24 hours.
Despite all the market fears, uncertainty, and doubt around the asset class; many cryptocurrency proponents are solidly bullish about the prospects of BTC. The most recent to express his faith is Changpeng Zhao, the CEO of Cryptocurrency exchange Binance.
Allaying fears of doubters on Twitter, he shared a secret with the market; answering one of the most asked questions, saying:
This isn’t the first time that the price of BTC has risen, only to fall again. However, cryptocurrencies and BTC, in particular, have fought through many bear markets and have always managed to come back up.
The first instance of a cryptocurrency market crash was in December 2017; when the price of Bitcoin reached an all-time high of $19,783.06 but fell 45% to a price of $11,000. The trend at the time saw Bitcoin at about $5,500 in the early months of 2018; following news that North Korea was preparing to outlaw the asset.
Back in March of 2020, BTC again declined by 30%, from $8,901 to trading at $6,206. Yet, the cryptocurrency recovered from that drop and exceeded its previous all-time high of $19,783.06 by November 2020.
Although BTC has taken its biggest knock so far in 2021, some critics believe that the bear market this year is different from other years.
When queried how he was managing the current trend in the market in an interview with Bloomberg, Michael Saylor, CEO of MicroStrategy, detailed price volatility as what convinces him that Bitcoin will grow beyond its present level. He emphasized his strong belief in Bitcoin as the only long-term way to give certain property rights to billions of people; much like mobile phones have radically changed music and knowledge consumption in the world.
Furthermore, reflecting Saylor’s viewpoints that the current market drop occurred from the “forced and rushed exit of capital and mining from China,” some Bitcoin investors advised traders to be patient, as Chinese miners need time to relocate. Another investor also strongly believes Bitcoin is going to “bounce so hard eventually and shoot past $65,000 and everyone is gonna wish they stacked at $30K.”
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