Bitcoin at $4,000: Even 50 Percent Collapse Would Preserve Best Asset Status
As Bitcoin stays above $4,000, even a loss of half its value would see it remain 2017’s most lucrative asset.
Bitcoin prices remain volatile but broadly above the significant $4,000 as belief its value has turned a corner grows.
An analysis of cross-exchange data from Coinmarketcap shows around 4.5 percent volatility in the 24 hours to press time, coupled with continued high trade volumes.
Bitcoin’s price performance continues to outdo the majority of major altcoin assets, many of which continue to slide on lackluster sentiment while investment flows into Bitcoin.
Trade volumes compiled by Coin Dance for LocalBitcoins and Bisq (formerly BitSquare) show new upticks for both platforms after a period of declining activity. Paxful also continues to gain traction.
Bitcoin’s stabilizing above $4,000 meanwhile has led to suggestions it will “never” go below $3,000 again.
Sentiment throughout the industry and beyond remains bullish following the virtual currency’s huge swing upwards this week.
Now, multiple factors are contributing to opinions not only that Bitcoin will reach $10,000, but that it will not dip below levels celebrated as historic highs just one month ago.
These include “prominent” analyst support, one post on Reddit explains, Russia’s Bitcoin mining plans, Blockchain capital influx from what Union Square Ventures’ Fred Wilson termed “dumb money” and others.
Nonetheless, some sources continue to express caution, BlockTower Capital CIO Ari Paul not ruling out a “collapse” to 50 percent of current prices but adding this would still place Bitcoin firmly ahead of alternative assets for 2017.
If Bitcoin collapses 50% from current levels, it will still beat every asset class for 2017 returns.— Ari Paul (@AriDavidPaul) August 15, 2017