Analysts are predicting that the price of Bitcoin could fall even further to $2000 if it does not bounce back in the near future.
Bitcoin Still Volatile
The price of one BTC fell well below $3500 only to surge up again within the past 24 hours after an uplifting announcement from Fidelity. The giant company announced yesterday that its earlier publicized project, Bitcoin Custody, would be launching soon in just a matter of weeks, and the news has mildly salved the threatening plunge of the crypto market.
In a time where parties are afraid to put their faith in digital currencies after a trying 2018, Fidelity’s announcement is a sign that institutional investments might just be the injection required to cause a bounce back for the crypto market. The news saw the valuation of the cryptocurrency market rise by $2billion within yesterday and today.
Analysts are however warning that the recent upturn is no guarantee that the market is safe; Bitcoin is still vulnerable and more trying times might still be ahead. Bitcoin traders are similarly not getting their hopes up yet, as the trend of the crypto market this year continues to fail to incite any form of optimism.
It appears that traders are prepared for a steeper plunge in BTC prices in particular if it fails to stay above the $3300 mark. Digital currency analyst, Don Alt, shared his belief concerning the imminent future of Bitcoin this year. According to him, a sharp drop to $2000 might be on the cards. He said:
“Sitting in the last buy zone before new lows. Cut some of my buys due to the breach of the top of the zone. Looking to re-add them if it is reclaimed. If green fails ($3,300), I expect a quick move into the $2,000s. If it holds $4,000 is on the cards.”
Light in the Tunnel
While popular influencers such as Vinny Langham continues to warn that a trying and getting-too-long crypto winter might just escalate into a ‘nuclear winter’ for the crypto sphere if changes don’t happen, there are, however, still plenty reasons to hope for a bullish run soon.
Big companies such as Fidelity and Nasdaq are proving to be the catalysts that the crypto market might need, following innovative and extensive plans that are bound to attract other institutional investors.
Nasdaq’s plan to launch a Bitcoin futures market in the first quarter of the year, along with Fidelity’s—the fourth biggest asset manager in the world—is set to win over institutional customers around the globe.