Bitcoin saw a fall in its value last Friday, leaving investors devastated. The previous month hasn’t been the best for the market-leading crypto, followed by China’s ban on using crypto and Musk’s decision to pause the acceptance of Bitcoin for Tesla. The price of Bitcoin continued to hover around $40,000, with many people impatiently waiting for “a dead cat bounce”. Analysts suggested that Bitcoin will shortly see a spike in value, putting the crypto back on track.
Following Bitcoin’s decline in price last week, other major cryptocurrencies, including Ethereum and Dogecoin, saw a drop in their values as well. It hasn’t been the best month for most crypto’s, as prices have been rising and falling quicker on shorter scales for a while now.
Market experts divided on Bitcoin forecast
While a majority of analysts are inclined towards the thought that Bitcoin will see a spike in value, some of the experts are guessing that it will rise in value for only a short period, following the pattern of 2017 price peaks.
However, the acceptance of Bitcoin as legal tender in El Salvador followed by the president of Tanzania showing hints of accepting Bitcoin as legal tender, led to a highly optimistic Bitcoin forecast for the coming year. Some projections depict that the crypto will touch £100,000; meanwhile, others predicted values going up to $250,000.
That being said, only time will tell what direction the cryptocurrency will head towards. Similar blips in Bitcoin’s market value were seen and analyzed in 2013 and 2017, so there’s definitely a chance that the pattern is being repeated. However, you never know when it comes to Bitcoin. It comes down to your gut feeling and what you choose to believe. Despite the disappointments amongst investors, many aren’t giving the drop in Bitcoin’s value too much worry. Instead, they’re hoping for a ‘dead cat bounce’ in the times to come as well.
El Salvador’s decision to accept Bitcoin as legal tender
Being the first country to accept Bitcoin as legal tender, the president of El Salvador, Nayib Bukele, showed the world what it means to be innovative and to think outside the box. Bukele supported his decision by stating that he believes accepting Bitcoin as legal tender will make it easier for the country’s citizens to send money back home while living abroad.
The president continued to add innovative thoughts regarding his decision, for instance, the offering of citizenship to someone who has proof of Bitcoin investments. However, the decision won’t be entirely supported by the World bank. A spokesperson for the World Bank told Reuters, “We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes,”
“While the government did approach us for assistance on Bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”