Sunday proved to be a turbulent day for the Bitcoin price, as the value of the popular cryptocurrency fell below $10,000 on numerous occasions. But, each time that it did, it quickly bounced back – a sign that Bitcoin’s “new normal” is above the $10,000 mark, according to one cryptocurrency expert.
“Looking at its performance this year, I believe that the new normal bottom price for Bitcoin is $10,000,” Nigel Green, CEO of DeVere Group, said.
“If it fluctuates below this level, it shoots back up again. We have seen this in action on Monday when Bitcoin hit $10,500 in a matter of minutes.”
Bitcoin’s value bounced between $9,900 and $10,100 throughout the day on Sunday, before returning to $10,500 in the early hours of Monday morning. The price climbed from $10,100 to $10,550 in under an hour.
The Bitcoin price is holding steady between $10,100 and $10,200 today.
Bitcoin could get a no-deal Brexit boost
According to Green, with Bitcoin’s bottom set at $10,000, the popular cryptocurrency will begin climbing back towards its $19,000 peak in the near future.
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“Bitcoin can be expected to imminently reach $15,000 for four main reasons,” Green explained.
Geopolitical issues, such as the US-China trade war and Britain’s fast-approaching exit from the European Union, will “increase exposure to decentralised, non-sovereign, secure digital currencies, such as Bitcoin”.
According to Green, people will turn to cryptocurrencies in order to “shield” themselves from costly turmoil in more traditional markets. We’ve already seen some indication of this happening in China, where the devaluation of its currency coincided with a sudden spike in the Bitcoin price earlier this month.
The impact that Brexit will have on traditional markets will likely vary depending on the outcome of negotiations between the UK and the EU. Green previously predicted that a no-deal Brexit, which remains a possibility, would likely cause a “sharp fall” in the pound.
Bitcoin is maturing, and investors should response
Green also points to Bitcoin’s maturity, and the technical advancements that come with it, as a sign that prices will only continue to improve.
“Bitcoin’s hash rate has smashed through another new all-time high recently and this fuels investor confidence,” Green explained.
Likewise, next May will see Bitcoin undergo another halvening. Every four years, the amount that a miner receives for mining Bitcoin halves. Typically, when this occurs, the price of Bitcoin spikes.
However, according to Green, the biggest contributor to Bitcoin’s continued success will be the “consistently growing” public awareness of cryptocurrencies.
“Cryptocurrencies, and in particular Bitcoin, are increasingly part of mainstream finance. This is evidenced not only in the financial sector, in which all major banks are increasingly looking at blockchain and crypto, but with big names within the tech and retail sector too,” Green said.