The Bitcoin price has been trading around the $6,000 mark over the past few weeks and chief trader and investors Jordan Hiscott are of the view that the pain of Bitcoin price drop would get worse as he sees it dropping to the $5,000 level by the end of the summer.
Jordan Hiscott, the chief trader at Ayondo Markets while talking about the Bitcoin price trend since the start of the year told investors and traders that the roller coaster is not over and they should brace themselves for further lows.
More Pain for Traders
Even though summer is considered the season for fun for most people, cryptocurrency enthusiasts wouldn’t feel the same way as the Bitcoin price continue to slide slowly. Hiscott says the Bitcoin price will continue to drop as the temperature heats up.
He made his opinion known while speaking to the Express, adding that cryptocurrencies are very vulnerable at the moment. He further added that “The ability to trade and get access to both positions and funds hugely affects the perception of the stability of crypto assets as a whole. This is important as not having the backing of governments, unlike fiat currencies, makes crypto vulnerable, which is evident in today’s fall in the value of Bitcoin.”
He further noted that “Japan’s Financial Services Agency has suspended the creation of new accounts at five of the main exchanges in the country. This, coupled with hacking events at some smaller scale exchanges in Europe, makes what I call the general ‘macro’ picture on cryptocurrencies negative, at least in the short term. Although today’s move to $6060 for Bitcoin is down 8% on the day, I wouldn’t be surprised to see the asset drop near $5000 by the end of the summer.
Light at the End of the Tunnel
Despite the Bitcoin price losing nearly 65% of its value since the start of the year, not everyone thinks the value will continue to drop. Analyst Phillip Nunn maintains that the number one cryptocurrency by market cap will reach $60,000 by the end of 2018. He noted that the current situation is due to market volatility and he is very sure that his prediction would come to pass by the end of the year.
Another analyst Todd Gordon agreed with the point that Hiscott made, adding that even though Bitcoin will drop to $5,000, he isn’t concerned with that. He says that it could even drop as low as $3,000. He told CNBC that such a price drop would shake out a lot of long positions, but then the “technicals will kick in.” Afterward, the Bitcoin price would surge past the $10,000 mark.
Whatever happens, it would be very interesting to see how the market will play out over the summer and beyond that.