The cryptomen market is currently experiencing turbulent times, and after a long growth trend, there has been a correction and a sharp fall in Bitcoin. Last week, it fell to an important level of $ 30,000 and reached its 5-month low, while its value is currently slowly rising again.
In connection with the increased volatility of cryptocurrencies, FonTech.sk approached four experts from Slovakia and the Czech Republic, whom we asked what is behind the current decline, whether it is currently a good time to buy cryptocurrencies and where they see the price of Bitcoin at the end of the year.
The following responded to the questions for FonTech.sk:
- David Stancel – Technical director of Fumbi, founder of Blockchain Slovakia, lecturer at the University of Economics in Bratislava
- Milan Letocha – founder of the magazine Kryptoguru.cz, specialist in cryptocurrency mining
- Pavol Lupták – ethical hacker and founder of Nethemba sro, co-founder of Hacktrophy sro, hackerspace Progressbar, Parallel Polis, Parallel Polis. Currently a perpetual traveler dedicated to the Liberation.travel project
- Karel Fillner – founder of the website www.btctip.cz and executive director of Invictus mining sro, long-term promoter of Bitcoin and cryptocurrencies
1. What caused the current fall of cryptocurrencies and how long do you think the current situation will last?
Cryptocurrencies are notorious for their volatility, especially in the period following the period of strong growth we have seen in recent months. The whole market has multiplied and it is therefore natural that some investors realize their profits and a correction occurs.
The correction is always, as now, amplified by sales of frightened retail, which often panic based on senseless tweets by Elon Musk or other news. I expect that this period will last at most a few more months, when we should get back to the growth phase.
The crypto community is very much in favor of the decline of Bitcoin due to Elon Musk for his tweets and China, which is now hard on the miners. Personally, I think it was a classic cycle, where the bitcoin value was at its cyclic peak and the bottom had to be tested. If we look at the current bitcoin exchange rate, we will see five attempts to break the price level of 30,000, each time the price fell below 30,000, there was a great hunger for buying.
There are currently several positive reports – Elon Musk, for example, is reconsidering the adoption for payment of Tesla vehicles (but has certain conditions), Salvador has recognized Bitcoin as official currency and is preparing to donate $ 30 to adults, Paraguay and especially Jack Dorsey is preparing the initiative The B World. There is really a lot of positive news, and the main thing is that the global economy itself is recovering from a pandemic. In conclusion, I think the worst is over.
There are probably several reasons for the fall, China has banned (already X-times the crypto, now the miners have actually been switched off), the states are fighting in a coordinated way against cryptomes (FATF, travel rule, ..).
Let’s try to ask first what caused the previous increase in the price of bitcoin and cryptocurrencies. During the first few months of the year, Bitcoin reached values of more than $ 60,000 very quickly, and the growth was so rapid that the question was not whether, but when and how deep the correction that was necessary would be received. Whether it stops at $ 50, $ 40,000 or $ 30,000.
At present, $ 30,000 seems to be a pretty good support, and as usual, we probably seem to have a relatively boring summer in which there should be no significant declines, but no price increases.
Of course, this is only a rough estimate based on data from previous years, it cannot be taken as a prediction. If I have to answer in general, then the state of the “fall” will not last long, I just can’t expect any enormous increase during the summer. Unless Bitcoin accepts what legal tender, for example, Canada. 🙂
2. In your opinion, is the right time to buy Bitcoin or would you advise to wait with the investment at the moment?
Such a massive sale, as we have seen with bitcoin and cryptocurrencies in general, is certainly a great shopping opportunity for those who understand the market cycle and ideally also cryptocurrencies in general. However, I recommend ordinary retail investors to buy in smaller and regular ones.
Right at the beginning, we have to ask ourselves what type of investor it is. If he is the type who wants to earn quickly in a few days, then I would rather advise these people to study the basic information about bitcoin, because the second type of investor, who looks at his investment in the long run, has studied this basic information.
Therefore, I am more inclined to investors who have studied this information and I would immediately answer that the time to buy bitcoin is always, as its average value is constantly growing. We must take Bitcoin as a lifelong investment for our descendants or for a pleasant retirement.
Yes, it is almost always a good time to buy a crypto.
I would not advise anyone at all. market timing and waiting based on tips from Facebook groups that the price of bitcoin will look below $ 20,000 this year, for example. Yes, it can happen. Or you’ll never see one either.
If you do not take bitcoin as short-term speculation, then simply assume that in a year, two, five years, given all the assumptions and characteristics, the price will most likely be several times higher and it makes no sense to speculate that compared to today the price may be a few thousand to fall.
3. Where do you see the Bitcoin price at the end of the year?
I think a limit of around $ 80,000 may be realistic. At the same time, I believe that in the long run, bitcoin will reach a six-digit amount.
To tell you the truth, I’ve been avoiding this problematic issue lately because, as Kicom himself (the founder of the popular YouTube channel about cryptocurrencies) says, “We all know h * vno.”
Currently, the number of positive news is starting to increase, but as it has been shown many times in the past, bitcoin can always surprise. Personally, I think there is some potential by the end of the year that it could exceed $ 65,000, or, I really speculate, $ 100,000.
I will be happy if it gets above 50,000, but I do not resist any optimistic estimates.
Don’t expect specific predictions from me. I’ve done them in the past and of course they were just estimates and maybe even pious wishes, sometimes it worked out, other times it didn’t. No one in the world can give you at least an approximate price of bitcoin in the medium term.
But if I had to bet, I would at least roughly assume an increase in interest in bitcoinn and cryptocurrencies at the end of this year, and thus a higher price than today, with a little luck, the new ATH. But take it with a grain of salt.