The month of November 2018 is one that enthusiasts of Bitcoin and other altcoins will not forget easily. The last two weeks saw Bitcoin shed off the most value since April 2013. The cryptocurrency bearish trend refreshed long held fears regarding the feasibility of Bitcoin as an asset.
Bearish trend will end?
In recent days, the price of Bitcoin went down to as low as $3,520. This is a dramatic fall from the hype of late 2017 where Bitcoin grossed almost $20,000 a coin. The price slump kicked off early this year when Bitcoin fell by about $10,000.
Nonetheless, Bitcoin enthusiasts are still optimistic with the asset. They believe that this is the best time to buy especially for those who want in for the long haul.
According to Fundstrat Global Advisors’ co-founder Tom Lee, the sell-off is the most opportune time to buy. Further, Lee said that there is a very high likelihood that mass adoption of Bitcoin as an asset will happen soon.
Commenting on the price of the asset, Lee said that what is going on is simply a price correction. However, he noted that the price will rise although not any time soon. It could take years, he said, which belies the point that this is a correction rather than a bubble bursting.
Bitcoin affected by external factors
“As soon as Bitcoin crosses its 200-day, we know there will be a flood of money coming,” Lee said.
Mr. Lee was speaking during the BlockShow Asia event which is currently underway. In his speech, Lee outlined that the recent slump is as a result of the recent Bitcoin Cash hard fork. According to him, the exercise diverted a lot of hash power and was a reason for worries for investors.
Further, Lee blamed the recent regulatory stance by the SEC as having supported the ongoing cryptocurrency bearish trend. Particularly, Lee called out the decision by the SEC to compel ICOs to give investors their money back.
Also, Lee observed that the current global markets are in a tailspin as fueled by the ongoing US-China trade war. Further, it is clear that despite the ongoing price onslaught, there are people buying Bitcoin.