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Bitcoin Back Below $4,000 Level, Analyst Sees More Price Drops but Bright Future

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Tech expert Jason Hope talks about Bitcoin and Cryptocurrency sustainability with Daily Forex Report.
As cryptocurrency debate rages, tech expert Jason Hope reminds us of Internet’s potential.

Cryptocurrency investors and traders have seen a recent slump in prices after a relatively stable period. Bitcoin had been hovering above $6,300 for weeks but took a plunge in more recent times. BTC was down as low as the $3,500 level this past week, before bouncing back up above $4,000. Now it’s returned back below that $4k level.

According to a Marketwatch report, Bitcoin was down to $3,988.91 at one point on Friday, losing as much as 5.2 percent since Thursday at 5 p.m. Eastern Time. The latest sell-off came after Bitcoin had bounced over 20 percent from its previous low. Analysts from the UK’s FX Pro Insights believe when the Bitcoin sold off at prices over $4,000 it was “short-term traders booking some profits.” They also called $3,500 an “important support level” for the digital currency.

In addition to Bitcoin falling, so did alternate coins including Ethereum (ETH) and Litecoin (LTC). The Ethereum price was down to $112,80, or a two percent drop, while LTC had fallen to $31.50, or down 4.8 percent. Other alt coins which saw their prices dip included Ripple (XRP) which was down four percent to 36 cents and Bitcoin Cash (BCH) which had fallen to $172.40 (down 2.3 percent from its previous price).

There have been a number of analysts making comments with regards to where things are and where they maybe headed. Union Square Ventures co-founder Fred Wilson is considered a “true crypto evangelist” with investments in multiple blockchain-related projects. However, he feels the worst has not yet happened within the plummeting prices in cryptocurrency.

In a separate report, Wilson compared the current state of cryptocurrency to the dot-com bubble and Amazon stock (AMZN). In 1999, AMZN was $90 per share. The online retailer and tech product provider was down to a low of $6 a share in 2001 for a brief period. He mentioned that it took eight years for Amazon to rise up out of that internet bubble and become the juggernaut of an internet/tech company it is today. Amazon was trading over $2,000 in late September of this year. As of this report, AMZN was at just over $1,690 at the close of trading on Friday.

Wilson added that crypto asset prices “could and probably will go lower” than they currently are despite an 80 to 95 percent drop they’ve already seen. However, he believes that those who ride out the storm with certain crypto assets may see “a price chart like Amazon’s current one in 18 years.”

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