During the period when Bitcoin (BTC) was trading above $60,000, experts and financial analysts confidently assured investors that the price of BTC would never drop below its previous all-time high. They even went on to suggest that buying the dip at $50,000 and $35,000 would be profitable opportunities. Later, they claimed that BTC would never fall below $20,000. However, these so-called “experts” have now gone silent and are nowhere to be found.
As a result, investors are left to ponder whether the bottom has been reached. Should they be patient and wait for the forecasted drop to $10,000, or is now the right time to invest in Bitcoin and altcoins?
Predicting price bottoms is generally a futile exercise. Instead, investors should focus on the fundamental reasons for choosing to invest in Bitcoin. While the price has fluctuated significantly, it is crucial to assess whether Bitcoin’s network fundamentals and the infrastructure surrounding it have improved or deteriorated. This data is where investors should seek confidence and formulate their investment thesis.
To shed light on this matter, Cointelegraph organized a Twitter Spaces event featuring analysts Joe Burnett from Blockware Solutions and Colin Harper from Luxor Mining. Here are some key highlights from their conversation.
Burnett believes that Bitcoin price is heavily influenced by Federal Reserve policy and its impact on equities markets. He emphasizes that on-chain indicators, such as the Bitcoin hash ribbons, should be taken with a grain of salt and not solely relied upon to determine the bottom.
Regarding the growing partnership between big energy providers, oil and gas companies, and industrial-scale Bitcoin miners, Harper sees this as a positive development for Bitcoin. He suggests that if these companies engage in mining, it would make Bitcoin more widely accepted and less stigmatized, depending on the politics of the oil producer.
When discussing the future of Bitcoin mass adoption and the growth of the mining industry, Harper envisions a scenario where more people demand final settlement of their Bitcoin and hold their own keys. Burnett agrees and predicts that over time, the Lightning Network will facilitate the use of Bitcoin as a worldwide medium of exchange, allowing it to separate from being solely an asset.
In conclusion, both analysts agree that the potential for layer-2 Bitcoin growth is promising, although it may take a few years. They believe that regulation and the increasing desire for self-custody will drive the adoption of the Lightning Network, making Bitcoin more scalable as a payment network.
To listen to the full Twitter Spaces conversation, click here.
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