This past weekend has proven to be rather devastating for Bitcoin. The asset crashed to the January price which was under $8,000 before the price rose to over $10,000.
It is kind of a surprise for the entire cryptocurrency space as most were expecting a steady climb until the halving in May which is expected to further boost the price..
Coinbase CEO, Brian Armstrong is one of those who have expressed their disappointment at the recent Bitcoin price move.
In a Twitter post, Armstrong said Bitcoin should be in a very bullish state right now and not in the crash that it experienced.
“Surprised we’re seeing the Bitcoin price fall in this environment, would have expected the opposite,” he wrote.
Hope of Bitcoin surge during halving dashed?
There are few fundamental historical facts in the cryptocurrency space, and one of them is that Bitcoin price always experiences a significant surge following a halving event.
This was true in 2013 and 2016, so the crypto space expected a similar pattern in 2020. However with this recent development, does it mean this halving will be different?
In 2016, Bitcoin price surged to 10 times its price after the halving that year. As a matter of fact, this served as a precursor for the 2017 all-time high.
A similar surge was experienced in 2013 which later led to Bitcoin’s highest price in 2014 since its creation in 2009.
Looking at such trends, key figures in the Bitcoin community have made projections for the price of the asset.
Billionaire investor and Bitcoin bull, Tim Draper is one of such who are very optimistic as far as Bitcoin price is concerned.
In January, he predicted that Bitcoin would go to $250 thousand latest within 12 months following the 2020 halving.
In his explanation, he said Bitcoin will see greater adoption as people get to see how bad the mainstream banking system is and run to digital currencies.
This he said will drive price to at least $250,000 by the end of 2022 or early 2023.
Has Bitcoin bottomed yet?
In January, Bitcoin went as low as $6,600 which was the lowest recorded for the month. At the time, there was an argument on whether that was the bottom or not.
MD at Digital Capital Management Tim Enneking at the time said Bitcoin had not bottomed yet and it could slide lower due to weak volume and a dominant descending trend, adding that recovery from the level was very weak.
Although Bitcoin was able to recover eventually and even get to over $10,000, thus giving credence to those who argued that the bottom was in, the latest crash has raised fresh questions on the matter.
Therefore the question remains; is the bottom in or is Bitcoin going below the current $7,750 it is at now?