Bitcoin’s market capitalization fell below $100 billion on November 15, 2018, for the first time since October 2017. Bitcoins were trading at $5,500, it’s the lowest price since the boom. 2020 has generally been a year of recovery and BTC has regained its value by a considerable margin.
The recent upturn also turned BTC into one of the best-performing assets of 2019, with a growth rate of over 100%. At the end of the day, it’s safe to say that Bitcoin is a high performing asset and it looks promising for the days ahead.
Depending on who you ask, BTC prices are either slightly bearish or surprisingly bullish. Although it would be foolish to determine future prices based on past performances, cryptocurrencies, in general, display cyclic patterns that can be analyzed to ascertain behavioral patterns.
If you take Bitcoin for instance, in the past two major boom and bust cycles, prices fell between 80% and 90% from the lifetime high. In that context, although a drop below $4,000 per token would theoretically be 80% pullback from the lifetime high, wouldn’t be the steepest drop experienced by the investors.
However, benchmarking Bitcoin’s outlook based on past performances isn’t guaranteed to yield results. And there are other more reliable factors that are often used to mark appreciation.
Analyzing the Factors Driving up BTC Prices
China recently began trading cryptocurrencies, which massively boosted the global crypto environment. Although a few entities are worried about openly trading BTC, China is quickly developing into a crypto powerhouse as it continues to keep its doors open for the rest of the world.
China’s bullish perspective on blockchain technology bodes well for the industry and President Xi Jinping was quoted as saying “We must take blockchain as an important breakthrough in modern technology for the further innovation of core technologies”.
The innovative Lightning Network that speeds up Bitcoin transactions aims to rectify the primary block that currently prevents the token from entering the mainstream. The Lightning Network focuses on adding a layer on top of the blockchain, which frees up resources required for transfers in the shortest time limit possible.
This makes it that much easier for the world to use BTC tokens for everyday expenses like buying coffee or at the Drive-through. The mass adoption of Bitcoin in retail environments is one of the walls that tech experts successfully brought down. And if the average consumer can transact using BTC as effortlessly as they can using debit and credit cards, the global adoption of Bitcoins will be that much easier.
Looking at the Path Ahead
Whether you should hold on to your blockchain tokens in the near future or get rid of them at the earliest is at your discretion. However, by glancing at the points that we’ve put together it’s safe to assume that cryptocurrencies have a bright future.
Crypto casinos are a major driving force behind the projected boom and websites like Casinobee.com list the trending platforms. Holding on to your tokens for the next 18 months could prove to be one of your best decisions, as the demand for BTC tokens is projected to go up in the near future.
If you’d like to enter the game before it’s too late, sign up at a crypto exchange today. So, to answer the original question: Will Bitcoin prices ever recover? The short answer is: most definitely. In fact, according to current projections, BTC prices are set to soar beyond $397,000 by the end of the decade.
This is a massive indication of the good days ahead and the currency’s future success. It would be smart to join the crypto revolution today and reap the benefits as the market matures. Cryptocurrencies are here to stay for the long term.