From the general fear people have to understanding a “Crypto Winter,” here are the 11 answers to the question, “Currently Bitcoin Price is 16,800 USD. Prices of digital currencies fell again. Bitcoin, the world’s biggest cryptocurrency, has plummeted about 65% so far this year, and analysts believe it could fall below $10,000. What’s your opinion about this?”
- It Won’t Help People’s Apprehension
- Minding the Butterfly Effect
- I See Light at the End of the Tunnel
- Now Is the Time to Buy and Practice Responsibility
- I’m Down 56% and Think It’ll Get Much Worse
- A Situation to Remain Wary of
- Bitcoin Lied About Everybody Winning at the Same Time
- Bitcoin Is the Crypto Pinnacle and It Will Rise Again
- Lack of Regulation in This Space
- Institutional Caution Will Mean Slow Recovery
- Crypto Winter Is Here
It Won’t Help People’s Apprehension
A recent survey of over 1,030 people revealed that many people still don’t invest in crypto because they think it’s too risky, or more specifically, not secure enough.
Roughly 26% of the people surveyed stated that they doubted their money was safe in crypto. What’s ironic about that—and I address this with those who come to us with crypto concerns—is that traditional banks are always subjected to data leaks and acts of fraud.
Your money isn’t any safer at those institutions. Bitcoin is subjected to a volatile market just like any other investment space and swoons are part of the free market, but it remains one of the most secure payment platforms in existence.
Bitcoin has never been hacked and is ironclad in that way. By all means, educate yourself before you invest in crypto, but understand that your money won’t go up in smoke after you take that step.
John Sarson, CEO, American Crypto Academy
Minding the Butterfly Effect
While the value of fiat currency is driven by many factors, such as economic indicators, central bank policy, and international trade flows, Bitcoin is largely influenced by demand and supply. The price will go up when there is more demand for Bitcoin than the available supply. Conversely, the price will go down when there is more supply than demand.
In addition, Bitcoin is also very sensitive to news. Any shocking information related to the crypto industry can drive a price under $10k or over $100k in a short time.
For example, if there are concerns about regulation or hacks, the cost of Bitcoin could decrease sharply. However, if there is good news about adoption or positive developments in the industry, the price of Bitcoin could increase significantly. As a result, anyone considering investing in Bitcoin must know the many factors influencing its price.
Michael Sena, Founder & CEO, Senacea
I See Light at the End of the Tunnel
I’ve been following the cryptocurrency market for a few years now, and I have to say that I’m not surprised by the recent fall in prices. Bitcoin, in particular, has been on a roller coaster ride over the past year, and I think it was only a matter of time before prices dipped again.
That being said, I think the current dip could be an opportunity to buy in at a lower price point. While there’s no guarantee that prices will rebound, I believe the long-term potential of digital currencies remains strong.
As more and more people become comfortable using them, I think we’ll see increasing demand and stability in prices. So while the current market conditions may discourage you, I remain bullish on the future of cryptocurrencies.
Lorien Strydom, Executive Country Manager, Financer.com
Now Is the Time to Buy and Practice Responsibility
You should always seek the advice of a financial professional rather than relying on layperson opinions like this on the internet.
Warren Buffett said to be “fearful when others are greedy, and greedy when others are fearful.” The price of Bitcoin tanked, and it may fall even further. When that happens, I see it as a buying opportunity.
If you look at the history of Bitcoin, it has gone through several boom and bust cycles, where it peaked in 2018 and 2021 at around $20,000 and then $70,000. If it follows the same pattern, we could be in a bear market for the next 3 years, and then it may peak again.
So, if you’re patient and have expendable capital, you could buy and hold for a few years while most people are dumping their crypto assets out of fear. But, practice responsibility too. This includes taking your crypto off of the exchanges and storing it in a wallet where it’s secured by the blockchain instead of your trust in the exchange’s management team and processes.
Dennis Consorte, Digital Marketing & Leadership Consultant, Snackable Solutions
I’m Down 56% and Think It’ll Get Much Worse
As a Bitcoin investor, I have a hard time admitting it, but I think it’s likely Bitcoin will fall well below $10.000 in the first half of 2023.
Having seen my investment go down 56% (so far), I don’t hold any illusions that a recovery will happen anytime soon. With the ongoing war in Ukraine, rampant inflation, a recession that’s manifesting itself, and, on top of all that, the recent collapse of the second-biggest crypto exchange, it’s going to be a long road to recovery.
As someone who’s down 56%, I feel kind of locked into my investment, but for anyone who’s only down 30% or less, I’d probably cash out. We’re in for a bumpy road ahead.
Holger Sindbaek, Founder & CEO, Online Solitaire
A Situation to Remain Wary of
The FTX implosion caused a major drop in the price and value of Bitcoin, leaving many investors wary of investing in cryptocurrency.
I believe it’s fair for analysts to say the price could fall below $10,000, especially if security issues, such as the one at FTX, are not properly addressed. It will take a lot of persuading to assure Bitcoin investors that it will soon be safe to invest again.
I believe that, with any stock, there is always a risk of a situation like this one occurring. Bitcoin is an intangible item that people can invest in. Based on its past success, a Bitcoin investment looked promising. Many investors believe that because it is an intangible item, the risk of the stock crashing is little to none.
As we’ve seen in the last two weeks, cryptocurrency investments are as, if not more, risky than traditional stocks. I believe investors should remain wary of this investment for now, and determine if it is right for them at a later date.
Henry Abenaim, CEO, Fundingo
Bitcoin Lied About Everybody Winning at the Same Time
Prices of digital currencies will continue to rise and dramatically fall until there is a centralized authority (or a bit of it) that inoculates the value of digital currencies from the direct influences of traders’ emotional volatility.
For many crypto advocates, the beauty of the Bitcoin-led crypto revolution was the decentralization it promised: epic freedom from the financial cabals running Wall Street and the traditional finance infrastructure.
But they forget that decentralization is a massive threat to the sustainability of Bitcoin and the crypto space. Bitcoin promised EVERYBODY would win at the same time.
But this is unrealistic—or realistic but not sustainable. A deregulated crypto space lacking centralized control architecture or authority will be too haphazard and susceptible to human sentiments—the latter of which is infinitely variable.
There will be a billion and one people pulling Bitcoin prices in a billion and two directions.
Lotus Felix, CEO, Lotusbrains Studio
Bitcoin Is the Crypto Pinnacle and It Will Rise Again
Anyone who understands and follows Bitcoin knows that this is not the first time that it plummeted rapidly. This time around, the Bitcoin drop was caused by multiple factors outside of its control.
Although Bitcoin could fall below $10,000 this year, I’m only giving it about a 10% chance to happen. Bitcoin is one of the most powerful and popular cryptocurrencies, and it will certainly rise back up again. It’s just a matter of when and how.
Gilad Zilberman, CEO, SeatPick
Lack of Regulation in This Space
I believe the cryptocurrency market is in a bubble, and it’s going to pop soon. The price of Bitcoin has soared over the last year, and now it’s at $16,800. This is an enormous increase from $9,000 in January 2022.
However, I think that there are several factors that are making this price rise unsustainable. One reason is the lack of regulation in this space. There are no rules governing how much money can be made or lost during an ICO or other cryptocurrency transactions like buying a token with another currency (like USD) and then selling it for BTC).
This means that there’s no way to know what will happen with these investments until after they’re completed. It also means that there’s no way to tell if an ICO is legitimate or not without doing your own research—and even then you might still be taken advantage of by scammers who set up fake websites or social media accounts and make promises they never intend to follow through on.
Shay Berman, President, YourDigitalResource
Institutional Caution Will Mean Slow Recovery
One of the most notable features of the recent SBF-FTX saga was that the Ontario Teacher’s Pension Plan lost over $95M in the collapse.
Cryptocurrency prices, such as Bitcoin, saw significant growth between 2017 and 2021, partly because of the amount of mainstream, institutional investors who started moving their money into the digital asset.
Now that interest rates are much higher, institutional investors are seeking less growth-focused segments and this has come at the exact moment that cryptocurrency has taken its biggest black eye in recent years.
It’s hard to picture institutional investors pitching their customers on crypto in the near term, which will limit the inflow of cash and the slower (or negative) growth rates will also scare off the casual retail speculators too. I see more downside in crypto until more large-scale applications and use cases are rolled out.
Brett Ungashick, CEO & CHRO, OutSail
Crypto Winter Is Here
Currently, the cryptocurrency market is experiencing a chain of black swan events as the impact of the dramatic collapse of FTX continues to ripple through the market. Genesis already took action by temporarily suspending redemptions and new loan originations in the lending business, which is code for saying they’re on the brink of bankruptcy. If Genesis goes, so will Grayscale—who recently cited security concerns as the reason behind their withholding on-chain proof reserves.
If Genesis and Grayscale follow suit with FTX, the selling pressure for Bitcoin will be extremely high, resulting in record-breaking low prices far below $10,000.
Therefore, if Bitcoin goes under 10k, it might become impossible for the token to regain its market value. Still, we’ve seen extreme shifts in the market over the year, so we have to wait and see how it all unfolds in the crypto winter.
Derek Sall, Founder & Financial Expert, Life and My Finances
