In the last 48 hours, following a big loss at Christmas, the price of Bitcoin has returned to around $ 4000.
The dominant cryptocurrency, which still holds a market valuation of over $ 64 billion, has shown wild volatility in a broad price range of $ 3,100 to $ 4300 throughout the month of December, struggling to recover levels of November.
Last month, the cryptocurrency market was valued at around $ 220 billion. As of December 28, the cryptocurrency valuation remained at $ 133 billion, down $ 87 billion within a 30-day period.
Key to Bitcoin recovery
According to Francis Pouliot, CEO and co-founder of Bull Bitcoin, a company based in Canada, the business will recover as individuals continue to build the protocol and the currency support infrastructure is strengthened.
Over the past nine years, Bitcoin has consistently survived major corrections, which on some occasions have worsened compared to the 2018 bear market, as builders, developers and companies prepared to support the next wave of investors and users during a market crisis.
Pouliot He said:
The way I see the price of Bitcoin: there are fundamental psychological, economic and social tenants that seem to create a similar model. The price goes up quickly, collapses down but on a higher scale with the new skin in the added game as value hodlers is discovered by the market. As an investor, I will focus on the queue of the distribution of participants in the Bitcoin network / ecosystem. Top new active people with skin + soul in the game, momentum, influence, resources, commitment, ideology, complete nodes, sovereignty. They are the people who give their value to Bitcoin.
The cryptocurrencies were not present in the past when the global market showed signs of a real recession, and as such, the narrative of Bitcoin as a safe haven has not yet been tested by the market.
However, with leading economists expecting the US stock market to suffer higher sales in the first quarter of 2019 triggered by the Federal Reserve's growing interest rate and the US-China trade war, Bitcoin could serve as an alternative payment medium and long-term investment for all the years to come.
On Time Magazine, Alex Gladstein, chief strategy officer of the Human Rights Foundation, wrote:
To be sure, Bitcoin is still a nascent technology and does not offer usability, speed or privacy at the forefront. But engineers are constantly working to bring these attributes into Bitcoin by creating better apps and ramps, updating the base protocol and creating new second-tier technologies like Lightning Network, which could mask and dramatically increase the number of possible second bitcoin transactions.
Risk of decline of the future
Over the past two years, many hedge funds have emerged that are focused on cryptocurrency with the intent of maintaining cryptographic assets as a long-term investment.
In the long term, Pouliot has stressed that since these hedge funds acquire tens of thousands of Bitcoins, the circulating supply of digital assets will decrease, limiting the potential amount of Bitcoin investors that could buy on the public market.
Featured image of Tedx Talks / YouTube
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