will bitcoin go back up in price? absolutely. And what about other cryptocurrencies? some will survive and some will not survive a prolonged crypto winter. You see, crypto markets are the very definition of a news-driven market. a bit of good news, and the markets go up. but a little bit of bad news and prices can crash quickly.
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If you have been following the crypto markets lately, you know that there is a lot more bad news than good news. Terraform’s Luna Project collapsed. the celsius network stopped all withdrawals, exchanges and transfers between accounts. And that’s not the only trade with credit-worthiness questions looming around them. coinbase recently laid off 18% of its workforce. Gemini has made similar moves. and there are rumors that many other exchanges could be even worse off.
so yeah, there’s not much to be positive about when it comes to crypto right now. that is why, for the moment, we have taken a long-term view of cryptocurrencies. we are not hopeful of any short-term major upside movement in price. But in the next couple of years, it’s quite possible that bitcoin will not only go back up, but break past its previous highs.
That said, crypto investors recently got a little bit of much-needed good news…in a roundabout way. talking head jim cramer was recently on cnbc’s squawk box, where he said:
It seems that cryptocurrencies are really imploding. it went from $3 billion to $1 billion. why should it stop at $1 trillion? there is no real value there.
This may sound like bad news. but those who have been following cramer’s crypto advice think otherwise…
will bitcoin go back up? maybe sooner than we thought
say what you want about the host of mad money and their investment advice. we are sure that it has provided good information for the last 17 years. But crypto hasn’t proven to be Cramer’s forte. in fact, he gained some notoriety for his coverage of the crypto markets.
recommended investors to take a sizable stake in coinbase (nasdaq:coin) shares when they were trading at around $250 per share. stocks on the popular exchange haven’t done so well since then. have fallen below $75 a share.
In addition to this, Cramer first noted that he took a stake in Bitcoin in December 2020. He then mentioned that he sold most of his Bitcoin stake in June 2021. His reasoning was that the price was not going up due to to structural changes reasons, regulations and cyber attacks. oops! a few months later, bitcoin reached its all-time high of $69,000.
Most recently, in April, he forecast that Ethereum was likely to make a 40% gain in the short term. since then, ethereum has fallen by roughly 60%. So again, Cramer doesn’t exactly have a wonderful track record when it comes to cryptocurrencies. so will bitcoin go back up in the next few weeks? maybe months? that’s hard…maybe. but we will certainly support the “cramer effect” to take over the crypto markets again.
but while it would be funny, if not hilarious, if old jimmy cramer failed completely one more time, it’s the opposite of safe. More realistically, we’re anticipating bitcoin (and crypto markets in general) to be pretty quiet for the next couple of years.
This, of course, offers an interesting long-term investment opportunity. should people invest in cryptocurrencies right now? well, that depends…
some tokens may perform better than others
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Lately, we have seen several random tokens outperforming the crypto markets in general. that’s not terribly difficult right now, but still…
for example, numeraire (nmr) has been on a hot streak lately. and before that, chainlink, xcad, and movez all had impressive short-term runs. some of these tokens increased up to 50% in value. but those gains were short-lived for the most part. but this serves as a reminder that even in a sideways market, money can be made. even for short-term traders.
Fast moves like these are best capitalized on by crypto traders. they can also be tracked using cryptocurrency trading bots. These programs can help take some of the guesswork and graphing analysis out of the equation. That said, there is less certainty that micro-cap tokens like these will survive a prolonged market downturn. so they may be good for some potential short-term gains, but offer a little less security in the long term.
These price movements also help remind us that there is still some life in the crypto markets. even right now. so will bitcoin go back up? there’s every reason to believe it will get its turn again… just like the smaller tokens mentioned above.
However, we are not suggesting an inevitable demise of any token. for all we know, they could outlive their grandchildren. but, if we were to make a sizable investment in any token right now, it would have to be one with some specific characteristics.
four elements of a long-term crypto token
- look for a strong use case. any crypto worth its salt should have a good reason for existing, beyond simply helping investors head “to the moon”. reading a token’s whitepaper usually provides the best explanation of its use case (if you have one).
- seek community input. a token’s team can have a strong presence on telegram, discord, or even twitter, where they interact with people. that can be a good sign of interest from developers, miners, participants, and others who have a long-term interest in the project.
- Look for longevity. although this is not the most important factor. a token that has flipped the block multiple times has a better chance of surviving a prolonged bear market than a new one. will bitcoin ever back you up, you ask. this point is a key reason why we believe it will. he has done it over and over again. has been down before. and it recovers every two times. why would this time be any different?
- do all of the above research and then some. any investment worth making is worth investigating a little more. look at the management team behind the project. (although this obviously doesn’t apply to the mystery team behind bitcoin). check to make sure a token’s liquidity pool is solvent.
bitcoin will rise again: the bottom line
There is every reason to believe that bitcoin and the crypto markets in general will eventually recover. Whether that stems from the upcoming bitcoin halving in 2024 or the “cramer effect,” we’re not sure. but in the meantime, bear markets have given people a lot more buying opportunities than they did a few months ago.
will bitcoin go back up? almost certainly. however, you are likely to see a lot of volatility in the meantime. therefore, the key here is to only invest what you can live without for the next two years. don’t dive into the rainy day fund to invest in crypto. it could rain. We strongly recommend that you only invest what you could reasonably consider to be money lost in the short term.