Is Bitcoin going to drop below $8,000? And if it does, do you care?

The cryptocurrency market is a rollercoaster, if you’re a day trader, which is why I’m really glad I’m not a day trader. I’ve already made two rules for myself when it comes to crypto:

  1. Only put a small sliver of my investment dollars into crypto. If I loose 100% of my money, it is a-okay.
  2. HODL until 2023 (i.e. five years from now)

Now to the current state of Bitcoin and the crypto market which has dropped like a rock over the last week. While it would be fun to say that you can use traditional technical analysis to explain what’s happening, or refer to your favorite Wall Street genius the reality is that crypto is incredibly volatile and even single news stories can move the market massively in one direction or another.

This week what scared the crap out of everyone (and for good reason) is that Bitcoin’s incredible price rise over the past few months could have been caused by a cryptocurrency exchange called Bitfinex buying a bunch of Bitcoin with…drumroll please, Tether.

In December 2017, Bitcoin reached a historic high of almost $20,000 (£14,000), before slumping to its current value of roughly $9,800 (£6,876). This catastrophic plunge may have been driven by the actions of a Bitcoin exchange called Bitfinex, it has now been suggested. This exchange stands accused of using a cryptocurrency called Tether to buy vast amounts of Bitcoin, which inflated its price. (Source – Metro.co.uk)

If this is true it means that Bitcoin’s price was massively manipulated and honestly, there’s nowhere to go but down. How low could it go? Who knows but I wouldn’t be surprised if it continues to drop like a rock.

As many of you know, I’ve never been ridiculously bullish on Bitcoin, Ethereum is my largest crypto holding and I’m also a fan of other altcoins like Litecoin, Cardano and Stellar. Of course, in the current market if Bitcoin is down, everything is down, and I think it could take a while for everything to sort itself out if it turns out that the rumors here are true.

So here’s the question, if Bitcoin drops below $8,000 – heck if it drops to $1,000, do you care? Since it’s such a small part of my crypto portfolio I’m not that emotionally attached to it…but if Ethereum dropped to $200 I’d be pretty bummed. That being said, given a five year time horizon I still see this as the very early days of crypto so I’m interested to see what the years ahead will bring.

What do you think? Comment and let your voice be heard!

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{ 7 comments… add one }

  • Snoopy February 1, 2018, 10:15 pm

    Think it will go to $200. I believe in the idea but I think it is possibly the most over valued thing in the history of the world. Think the actual usage is quite limited and not mainstream.

    Reply
  • Michael February 2, 2018, 12:29 am

    In the beginning of bitcoin all the early people talked about was how they can send anyone money all over the world with almost no fees. Little coffee shops where taking bitcoins as payment but now fees are getting to $20-40 when the block is all jammed up with transactions. Are they going to fix bitcoin so people can use it as real money? If anything I think that is one of the real problems

    Reply
  • Tim February 2, 2018, 8:17 am

    I anticipated this. I invest in something (I bought BTC at about $16k) and I immediately lose money. Par for the course. Thankfully, I didn’t put much into it, no more than I could comfortably afford to lose. But I’ll be hodling. I’ll even buy more when I think it’s bottomed out. Because, unlike the South, it will rise again. 😉

    Reply
  • Jose February 2, 2018, 9:05 am

    Morgan friend, as you well wrote in a post you only invest your money saved in Crypto.

    I think that luck will accompany you as one who buys fund.com at the time and eventually earn a large percentage of the investment.

    Although friend the market of the stock market is a danger. do not think that until 2023 you will not have important losses and benefits of and a few days and weeks, but the destiny of each one is ephemeral, I of you for your security would look for a broker you will always lose less than going alone, you yourself do not have the soul of amateur, you know it well.

    Reply
  • Cate Colgan February 3, 2018, 6:27 pm

    I too am glad I’m not a day trader – I invest in technology/projects. Ethereum, Presearch PRE, and Rchain RHOC biggest holdings for me – love the building …. 👀 forward to ETHDenver.com

    Reply
  • Zev Lazer February 3, 2018, 6:44 pm

    I am also a fan of ethereum, not too much more of a fan than I am of bitcoin however, I do like Eth for its programmability.

    That said, it should be very clear that all cryptos move in tandem and ethereum or stellar or $othercryptos will not decouple from bitcoin – other than for some newsworthy days (i.e the POS announcement day, etc.).

    While I believe that Bitcoin and the rest will move further down (yes, even Eth could see $200), for a long term believer, it would be a buying opportunity.

    Amazon IPO’ed at $18, went to $100, then crashed to $10. Where is AMZN now?

    -Zev

    Reply
  • Richard February 3, 2018, 8:29 pm

    heck if it drops to $1,000, do you care? Since it’s such a small part of my crypto portfolio I’m not that emotionally attached to it…but if Ethereum dropped to $200 I’d be pretty bummed.

    Only way one happens without the other is some sort of systemic failure in BTC. All crypto currencies have a high beta, and with BTC accounting for ~40% of entire market you can pretty much presume a drop to $1K on BTC will see a very similar drop across the cypto board. Not saying it will happen, but it’s pointless assuming that ETH wouldn’t drop very significantly if BTC lost a further 85% of its value.

    Reply

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