The price of Bitcoin this week crashed 50% from its November highs of $69,000 towards $35,000 as of Saturday morning, which left many stakeholders wondering if they should hold or sell.
Olumide Adesina, finance and crypto analyst at the ‘Nairametrics On the Money’ series stated that the price may fall further towards $25,000, hinting at US policy relations towards crypto which should be certain later this year.
This comes as the US Government recently announced that it will release an initial government-wide strategy for digital assets from next month, in a bid to access risk and opportunities in the crypto market for American consumers.
According to Bloomberg “the directive would also require other agencies to weigh in — carving out roles for everyone from the State Department to the Commerce Department. Some of those tasks will be meant to ensure that the U.S. remains competitive as the world increasingly adopts digital assets.”
Hodlers react
However, online there were mixed reactions towards the crash as EL-Salvador President and Bitcoin Evangelist, Nayib Bukele hinted that he is happy to “ buy the dip” stating he did not miss the last “ drop” as “El Salvador just bought 410 Bitcoin for only 15 million dollars, he also added, “Some guys are selling really cheap.”
- Another Bitcoin Evangelist, @APompliano hinted that it is also a good time to buy the dip, adding that “The President of El Salvador just announced that they have bought 410 bitcoin. A nation-state is buying the dip.”
- Pomp also urged everyone to calm down, highlighting that Bitcoin had at least one price drawdown of 50% or more in 2018, 2020, and 2021.
- Popular Crypto Investor, Lark Davis, while acknowledging the recent dip, still showed his bullishness towards the price of crypto, saying that it’s been a “Rough start to the year, but Bitcoin’s still going to 100k in 2022!”
- Economist Peter Schiff noted that due to the orderly decline of Bitcoin, there hasn’t been much of a panic and warned that a flash crash may not even start until after Bitcoin breaks $30K. “So far the decline in Bitcoin has been very orderly. No one is panicking yet. It’s sliding a slope of hope. At some point, there’ll be a flash crash. That’s how these declines typically end. This flash crash may not even start until after Bitcoin breaks $30K. Then look out below!” he said.
- In response, he also hinted that Gold is holding much better than most assets as an investment hedge, adding that “it should be running. But don’t worry, it will” Peter Schiff also forecasted that Bitcoin has finally broken the neckline of a head-and-shoulder top, adding that the scary part for the Hodlers is that the pattern projects a move below $30,000. “Once that level is breached, Bitcoin will have completed a massive double top. From there a crash below $10,000 is highly likely,” he stated.
Generally, there have been mixed reactions online to the price crash, with dedicated stakeholders being more bullish the price will rise noting that there have been further flash crashes, others note that the price could drop even further.
