With Bitcoin’s recent crash on Tuesday, many marketers have warned of a breach that could push the price below $30,000 and cause a “mass surrender” as the prices are much lower than their all-time high. Although the recent crash hasn’t shaken the determination of “diamond hand” holders who have been through such hits before, they are very optimistic about Bitcoin jumping back and even going past the $500k mark. One such renowned holder is Tyler Winklevoss, who has been holding Bitcoin for a very long span and believes that it can knock over gold’s market cap in this decade and a 10X looks achievable.
Why did the prices plunge?
Tuesday’s selloff was hugely credited to the authorities discovering a hole in Bitcoin’s blockchain, as the lion’s share of Bitcoin recovered by the FBI was used as a ransom to pay cybercriminals who attacked the Colonial Pipeline.
It is still unclear how the FBI managed to access the private key or passwords to recover the funds from the conspirator’s wallet. However, some suggest that due to internet infrastructure in the US, the law enforcement authorities have had search warrants that allow them to access the emails of cybercriminals. The selloff results from people believing that the Bitcoin network was hacked, which raised questions about its security.
Current Activity
The recent selloff witnessed a reduction of at least 18% of active addresses in the Bitcoin network. This tumble is said to be around half the reduction seen back in 2017, although this shows that the activity may have slowed down the demand.
Is it practical to aim at a $500k price?
Considering the recent fall, Bitcoin reaching the $500k mark is a very practical approach that currently stands at $33k, almost half its All-Time High. Even at this price, enthusiasts hold and buy more Bitcoin as they wait for the next big move. However, experts also believe that the market has the potential and will reach its new highs in the next three years.
Due to its limited supply and simple demand to supply strategy, there has been a clear indication of a surge in Bitcoins usage and price. In every 3-4 years, the price of Bitcoin has increased over 10-20x with the current scenario, we can easily target a price of $200k-300k by 2024, and with famous personalities, politicians, companies supporting this new technology, it is tough to call this plunge an end to Bitcoin dominance in the market.
