Is Bitcoin dead? Bitcoin (BTC) has been trapped in an extended bear market since 2018. The digital asset has been positioned for the next catalyst that’ll force a price break after hitting its all-time high of $20,000 nearly two years ago. What will force the next rally? Is the leading Bitcoin dead?
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) Dropped to as Low as $3,150 at One Point
Bitcoin has been steadily falling since the $20k highs. It even dropped to as low as $3,150. This is an 85% decline from Bitcoin’s peak position. The state of the digital asset has made investors and traders concerned for months.
Now, experts have predicted that the next catalyst could come from a strange source. Central banks might begin to stockpile Bitcoin (BTC) as a digital gold.
Bitcoin is typically called digital gold because of its scarcity and potential to be a true store of value.
“The main usage for BTC today is as a digital gold,” says Garrick Hileman. Hileman is the head of research at the London School of Economics.
Central banks, set interest rates, and manage the creation of money. They make sure economies continue to tick without overheating. They manage staggering amounts of funds and assets. Initiatives carried out by big central banks, like the European Central Bank or the U.S. Federal Reserve Bank to stockpile reserves of cryptos could trigger unprecedented demand.
Central Banks Still Have Fractious Relationships With Cryptos
But the majority of central banks have fractious relationships with cryptocurrencies in the current framework. Many of these banks are distrustful of the nascent technology. Central banks are worried about overly-keen investors creating unmanageable bubbles.
$400 billion has been wiped off the value of Bitcoin and the wider crypto market in the last 14 months. The 2017 bullish rally is largely attributed to the expectation of institutional investment as well as big bank support for bitcoin. However, investors didn’t appear as expected in 2018. Investors already in the system and traders began to get cold feet. They all bailed out of their digital currency positions.
Hileman also stated that recent regulatory changes have been positive for the cryptocurrency market.
He also indicated that the CME Bitcoin futures exchange along with law enforcement run Bitcoin (BTC) auctions as a tacit “endorsement” of the cryptocurrency industry.
2017 Bull Run the Greatest Ever in Bitcoin (BTC) History
The Bitcoin USD price live has gone through several boom and bust cycles. However, the 2017 bullish run was by far the biggest ever in crypto history.
Bitcoin’s price has since been trading flat. Bold bitcoin bulls have continued speaking about Bitcoin (BTC) and crypto prospects. The CEO and founder of Galaxy Digital, Mike Novogratz said the next bullish move Bitcoin (BTC) makes will definitely be “higher.”
Novogratz just as it is with other Bitcoin and crypto bulls, including Binance’s CEO Changpeng Zhao, the CEO of BlockOne and EOS co-founder Brendan Blumer. The Winklevoss twins who created the U.S. based Gemini exchange have also said they have faith in bitcoin and the rest of the crypto assets despite the continued price downturn. The bulls are betting that digital currency prices will move higher.
Will Bitcoin recover in the next rally? Only time will tell what the outcome of such a rally will offer.