It has been a rough start in the new year for bitcoin. The world’s leading digital currency by market cap has lost approximately $30,000 from its price in just the past 2.5 months alone, and yet there are many analysts out there claiming that buying more may be the right move to make.
Bitcoin Investors Shouldn’t Give Up
If you had purchased $1,000 in bitcoin early in the year, it is estimated that you would only have about $800 left right now. With such a loss, one would think cutting risks and exiting the space early is the right step, but there are many industry experts out there that say doing the opposite is the best route.
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Tyrone Ross – CEO of Onramp Invest, a crypto asset platform – explained in a recent interview that bitcoin is still a popular asset. This kind of volatility is to be expected at this point, and thus people shouldn’t exit once things begin getting a little rough. He states:
When something goes on sale and you like it, you should buy it.
There are many people in agreement with him. In fact, despite the recent dips, there are still many analysts out there that believe 2022 will be the year in which bitcoin reaches $100,000. One of those analysts is Antoni Trenchev, the co-founder and managing partner of crypto lending firm Nexo. In a recent statement, he said:
I think [bitcoin is] going to reach $100,000 this year, probably by the middle of it.
He’s so confident in bitcoin’s abilities that he doesn’t even think it will take until the end of 2022 for bitcoin to reach six-figure territory. He predicts that this number will be hit by the summertime.
Ross furthered his commentary by stating that there are now more businesses and companies out there willing to accept crypto as a method of payment. Initially, bitcoin and several altcoins were designed to push checks, credit cards, and fiat currencies to the side. They were built to serve as payment methods for goods and services, but their volatility has gotten in the way of this goal.
According to Ross, the more businesses begin accepting BTC and crypto as methods of payments, the more their prices and valuations will rise. He says:
I think we’re not at mass adoption yet, but we are at mass acceptance.
Others Warn of Impending Hardships
Still, other analysts are telling traders that it’s time to wait. They feel that crypto is likely to experience more bearish behavior in the coming months, and thus purchasing any assets at this time will likely result in the suffering of one’s portfolio.
In addition, they also advise not investing right away until one is completely comfortable with the space. They say investors need to educate themselves and truly be aware of the risks associated with the crypto space before getting involved.