Not A Good Start For Crypto As New Year Brings Further Dip In Prices
Several people have said that 2020s would be the year of crypto but just a few days into 2020, and the bears are still in control.
The bitcoin price has been on a sheer downward trend over the last six-months with bitcoin today falling under the psychological $7,000 mark to trade as low as $6,900 per bitcoin on the Luxembourg-based Bitstamp exchange.
“We stand before the dawn of a new decade. As we look ahead, there is little doubt that the next one—the 2020s—will be the decade of crypto,” the co-founder of the U.S.-based Gemini bitcoin and cryptocurrency exchange Tyler Winklevoss boldly announced on New Year’s Eve.
So far into 2020, bitcoin is dropping almost 4%, while the top ten digital tokens bitcoin cash, EOS, litecoin, and binance coin are away by around 5%. Tezos is the biggest failure for 2020 so far, falling almost 8%.
However, bitcoin was one of the best-performing assets in 2019, with many bitcoin bulls feeling emboldened by bitcoin’s performance over the past 12-months despite its massive downturn the year before.
Bitcoin was uphill 90% for 2019 while iPhone-maker Apple’s share price rose 85%, and the tech-heavy Nasdaq scored 35%.
“We’re at a critical stage in bitcoin’s price trajectory,” said George McDonaugh, cofounder and managing director at KR1, a cryptocurrency and blockchain venture capital investment firm told financial newswire Bloomberg following the new year downturn but predicted the bitcoin price will likely soon rebound to around $7,500 before climbing through to the middle of the year.
McDonough led to “strong fundamentals and the creation of new bitcoin wallets, among other things,” as the cause for his bullish stance.
Bitcoin and cryptocurrency spectators are looking ahead to the launch of the crypto platform Bakkt’s Starbucks project, social media giant Facebook’s libra cryptocurrency, crypto platform Bakkt’s Starbucks project, and bitcoin’s May halving event when the number of new bitcoin compensated to miners will be halved.
Subsequently, Twitter’s chief executive Jack Dorsey has ambitious plans for bitcoin and significant U.S. bitcoin and cryptocurrency exchange Coinbase is working on some impressive new technology.
Meantime, some economists remain to advise against bitcoin and cryptocurrencies with one branding bitcoin a “pyramid scheme” on the first day of the new year.
“You only make money based on people who enter after you,” Tendayi Kapfidze, chief economist at online lending marketplace Lending Tree, said in an interview with Yahoo Finance, adding that bitcoin has “no real utility.”
“They’ve been trying to create a utility for it for ten years now. It’s a solution in search of a problem, and it still hasn’t found a problem to solve.”