Zhao Dong, a well-known bitcoin (BTC) billionaire in China, recently predicted that the bitcoin price will surge to $50,000 within the next three years.
Buy BTC While Nobody Is Interested
Dong, who reportedly owns a stake in digital asset exchange, Bitfinex, said that it is currently a good time to buy BTC as he believes the flagship cryptocurrency’s price will appreciate in the coming years.
Dong explained through a post on Chinese microblogging website, Weibo:
In the bull market, I don’t persuade people to buy Bitcoin, because it seems easy to make quick money but in fact it is not. Now [in the bear market], I start to talk people into buying Bitcoin. Those who make truckloads of money do not have a very short-term speculative driven investment mindset. Perhaps Bitcoin price will continue to drop even lower,and it may fall up to 50 percent. But it is still worth steadily acquiring coins every time it hits a new low. You possibly see a yield of 100 to 200 percent in 3 years.
Volatility Returns To Cryptocurrency Markets
Notably, Dong’s bullish prediction comes as bitcoin dropped to its lowest price since the last 13 months. According to CryptoCompare data, the BTC price fell to around $4,277 on Wednesday and is currently trading at around $4,335.
As covered, bitcoin price declined sharply on November 19th and notably dipped below the $5,000 mark for the first time since October of 2017. The value of the world’s most dominant cryptocurrency and also that of most other major digital assets continues to decline. After reaching record-level highs in December 2017, the bitcoin price fell but continued to stay above the $6,000 mark for most of this year.
However, BTC price dropped below $6,000 on November 14th and has failed to recover. In July 2018, bitcoin’s price had dipped below $6,000 but it managed to recover slightly and even traded as high as $8,300 during the summer months of 2018. Moreover, bitcoin’s 30-day volatility index was at its lowest levels (since December 2016) as the cryptocurrency traded in the narrow range of $6,400-$6,650.
Although it still remains unclear why cryptocurrency prices continue to decline, there had been research reports published recently – which concluded that the markets were being manipulated by “informed traders”, and that they “had been the key drivers of the observed price changes.”
Thinking Long-Term
As covered, many analysts attributed the drop in crypto prices to the controversial Bitcoin Cash (BCH) hard fork. Despite high volatility levels returning to the nascent cryptocurrency market and as prices continue to decline, many prominent players in the blockchain and digital asset industry think the market will recover in the long-term.
As covered, Mati Greenspan, the senior market analyst at giant social trading platform, eToro, reminded everyone that bitcoin (BTC) is still up 500% since January of 2017 (when it traded at around $1,000). Other well-known crypto market professionals including Ran NeuNer, the host of CNBC’s “Crypto Trader”, said:
If you are not actively trading the volatility or buying – don’t even look at the prices today. Your emotions will make bad decisions.
