Though the world’s largest cryptocurrency rebounded above $9,200 on Tuesday, the expert sees the price crashing to between $2,000 and $3,000 this year before rising again.
“Typically Bitcoin has declined 80% to 90% after reaching new highs before starting the next wave,” he says. “Not that history always repeats itself but at the end of the day, Bitcoin is a commodity and one whose transaction volume is decreasing while other coins are chipping away at its dominance as the de facto trader’s currency which it has enjoyed. As more people adopt crypto, Bitcoin will continue to lose its ‘reserve currency’ price premium. Bitcoin might be the first coin, but who is still using the first web browser today?”
Nevertheless, Zynis doesn’t see this potential drop as a permanent reduction. Instead, the coin may rise past the $30,000 mark “perhaps some time next year when the global economy tanks and governments race to print money.
By Jade Olafson