The cryptocurrency market could keep falling according to Stephen Innes. During an interview with Bloomberg, the Asia-Pacific market trader at Oanda talked about Bitcoin and the crypto market. He explained that Bitcoin could be traded close to $2,500 before starting to grow again.
Could Bitcoin Reach $2,500 Dollars?
The cryptocurrency market has been in a bear trend since the beginning of the year. Bitcoin went from $20,000 back in December 2017, to under $3,700 a few days ago. However, there are some analysts that expect Bitcoin to fall even further.
Stephen Innes believes Bitcoin will reach $2,500 in the near future. He mentioned that the market fell during the last months because of several reasons. The first thing he said is that the Bitcoin Cash (BCH) network update on November 15 had a negative impact on the whole market. Innes added that institutional investors did not run to Bitcoin as it was expected in the past. Additionally, he marked that there is a lot of uncertainty in the market and in the regulatory framework around virtual currencies.
A few weeks ago, the U.S. Securities and Exchange Commission (SEC) announced enforcement actions affecting two Initial Coin offerings (ICOs).
Bitcoin Cash’s network upgrade had a deep impact on the market, as he commented. Since the update started, the market lost more than 30% of its value and there are now two different chains, Bitcoin SV and Bitcoin ABC (with the ticker BCH).
During the conversation, he said:
“You know it’s a bit of a wild west show out here in crypto lands, that’s for sure, so we have to be a bit guarded. Looking at some of these metrics, basically [there’s] unquantified risk. [And] what I’m really looking at is the way coins have been trading in the past few months, and it’s indicative that the [Bitcoin] bottom isn’t in.”
Bitcoin should fall more than 30% if it wants to reach the target that Innes proposes. Since its all-time high, Bitcoin lost around 80% of its value.
According to Bloomberg Intelligence, Bitcoin could fall even further and reach $1,500 dollars. Clearly, this is the least conservative target among analysts.
At the time of writing this article, Bitcoin is being traded around $3,730 dollars, as CoinMarketCap shows. Bitcoin remains as the largest virtual currency in the market with a market capitalization of $65 billion dollars.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.