InvesterCrypto.net - The anticipated future of Bitcoin appears increasingly bleak. According to the latest analysis, the price of the cryptocurrency may experience a significant decline.
This worrisome perspective has already begun to instill doubt among investors. With growing volatility and unsettling market signals, the future of Bitcoin remains uncertain and raises many questions.
Stagnation in Bitcoin network growth is causing concern for Jurrien Timmer. According to Jurrien Timmer from Fidelity Investments, the valuation of Bitcoin is heavily dependent on the dynamics of its network.
Analysts describe Bitcoin as "exponential gold." This metaphor underscores the digital scarcity of Bitcoin and its potential as a store of value. Timmer explains that the rise in Bitcoin prices generally follows the curve of network growth strength, reflecting patterns observed in various technological innovations.
However, Timmer recently observed a worrying slowdown in growth. Despite the continuous increase in Bitcoin prices, he noted a significant discrepancy between the value of the crypto and the expansion of its network. For him, this situation is concerning and could hinder Bitcoin's ability to reach new levels. He asserts that significant acceleration in network growth is crucial for the queen of cryptos to return to solid bullish dynamics.
While Jurrien Timmer only expresses his concerns, Peter Brandt, an experienced analyst, offers a much more pessimistic view of Bitcoin.
Contrary to expectations of a spectacular increase, Brandt asserts that the current bullish cycle of Bitcoin may have come to an end.
Based on previous bullish cycles, he observes a trend of diminishing gains. For example, in the 2011/2013 cycle, there was an 82% decrease in earnings compared to the 2010/2011 cycle, and this trend continued with similar decreases of 79% and 82% in the following cycles.
For Brandt, if this trend persists, the recent peak of $73,777 could represent the peak of this cycle. Additionally, Brandt has issued a clear warning about the potential for a decline in Bitcoin prices. Currently, the flagship crypto is struggling to maintain the $70,000 threshold.
Experts estimate that if Bitcoin falls below $65,000, it could quickly drop to $60,000, and if this level does not hold, a decline to $48,000 could occur.
This perspective sharply contrasts with the optimistic predictions of some experts like Mike Novogratz and Robert Kiyosaki, who forecast prices reaching $100,000 or more.
Therefore, investors are advised to exercise caution in facing this bearish perspective. Enhance your Cointribune experience with our 'Read to Earn' program! Gain points for every article you read and access exclusive rewards. Sign up now and start reaping the benefits.
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