A few days ago, Bitcoin made another shocking price swing – as it has done previously in the past, but this time for the worse as opposed to swinging for the better. Within a few minutes, Bitcoin fell from its $8,000, losing over $500 to trade below $7,500.
This occurrence definitely dampened most people’s spirits who were already disappointed about the recent Bitcoin performance and now feel a bit more helpless. It caused many in the Bitcoin community to think about whether or not there’s a chance for Bitcoin to repeat the bull run it did back in 2017.
Bitcoin’s current all-time high is about $20,000 which happened almost two years ago in December 2017. Since then, the community has been extremely optimistic about its chances to revisit $20k but has been disappointed so far.
Today, it is safe to say that expectations are now somewhat bearish with a significant reduction in the number of bullish prognostications that normally engulf the cryptosphere.
Online, several ideas have been pushed for a possible reason why Bitcoin may not retest its 2017 levels. One particular Redditor, u/Viruscatman, explained that the amount of effort it took to get Bitcoin to $20k is almost impossible now because interest is seriously waning and the expected scarcity from the upcoming halving will do next to nothing to make things better.
“Going from $300 to $20k took about 200 billion give or take …You guys seriously think TRILLIONS are going to flow into Bitcoin overnight because it’s getting more scarce? If people are not interested in Bitcoin they don’t give a crap if it’s scarce or not.”
The Redditor then added that Bitcoin could surge that high at the time because there was a higher risk and lower market cap. Now, things are just not the same anymore.
“Sure, Bitcoin will rise again. But you ain’t gonna every make 2000% profit again unless maybe you hold for 30 years.”
In some quarters, the reason for Bitcoin’s failure can be tied to the current problems being faced by Facebook’s Libra and the regulatory backlash the project is receiving. Just recently, Zuckerberg was tongue-lashed by Congress about Facebook and whether or not the Libra was a good idea, effectively dampening the mood around not just Libra but the crypto market in general.
Also, the relationship between Bitcoin and USDT has been brought to the fore as well. Usually, Heavy USDT printings have a significant effect on Bitcoin’s price. However, that relationship hasn’t repeated itself much in recent times, leading people to draw the conclusion that Bitcoin has probably already seen the best days it’s ever going to have.
