Bitcoin’s price plunge is real… It could drop to $10,000 next year.


Bitcoin, the number one virtual asset market capitalization, has plunged. In the fourth quarter of this year, many investors had hopes for the Santa Rally (a trend that shows strength around Christmas and the year-end), but it did not lead to reality. Some experts are optimistic that this will be the starting point for a major crash. In the worst case, some analysts say it could lower the low to $10,000 next year.

According to CoinMarketCap, a cryptocurrency market site on the 29th, the price of bitcoin fell 3.24% from the previous day to $46,413 at around 7 pm on the same day. This is a decrease of more than 3% from the previous week. It is the lowest since the 21st, before Christmas.

This was influenced by the combination of the re-spread of COVID-19 and the decline in the New York Stock Exchange. According to the New York Times (NYT), the average daily number of new COVID-19 cases in the United States for a week as of the 27th was 234,099. It has more than doubled compared to two weeks ago.

Some critics are concerned that next year, virtual currencies will have difficulty withstanding external factors such as the end of US tapering (reduction of asset purchases) and interest rate hikes. In this case, the investment attractiveness of risky assets will naturally diminish.

In the worst-case scenario, the price could drop to as low as $10,000. Carrie Alexander, a finance professor at the University of Sussex, is concerned that Bitcoin could plunge to $10,000 next year. After peaking near $20,000 in 2018, Bitcoin plummeted to the $3,000 level in just a few months, he said.

On the other hand, there are also positive opinions that the price of Bitcoin can still go as high as $100,000. Bill Bahid, CEO of cryptocurrency exchange Abra, also gave an optimistic view that it could reach $100,000. However, he added a clue that it could experience a decline of more than 20% in the process.

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