Bitcoin has been fluctuating the last few hours and an expert says the price may further fall to $5000 before the end of the year.
There have been speculations that this fall was imminent as published on news websites earlier this year claiming that Bitcoin will appreciate to $50,000 before the end of the year but a fall to $5000 will preceed it.
An expert in the financial market and founder of On-chain Capital Ran Neu Ner has confirmed this prediction in a recent interview with CNBC.
Speaking on the programme, Ner said bitcoin will lose value but not because of several stories of hacks but rather because it does not enjoy enough demand at this time to drive its price up.
Among other things, Ner said the fall of bitcoin to $5000 will make it difficult for miners to keep up considering the increasing cost of mining which will seriously affect the market.
The price of bitcoin had been on a decline this year before rising up to $7,000. Since then the price has fallen to $6000 before rising again before the recent fluctuations.
This fall may make miners to consider mining other cryptocurrencies and abandon bitcoin which can lead to a total crash of the asset.
Earlier this year, several other experts had spoken concerning the fall of bitcoin, one of which was Willy Woo, a prominent digital asset and crypto analyst. In his words, Woo mentioned some factors that will affect bitcoin price which agree with Ner’s position concerning bitcoin’s predicted fall:
“NVT Signal is still too high. We need more blockchain transactional activity to justify the current price, or the price to drop to reconcile the difference. To drive up transactional activity in a bear slide is very unlikely. Volatility is still too high. I’m looking for a sustained low band of volatility which tends to be a signal for the end of the detox and the next accumulation phase. It’s still got some time to ride down,”
Apart from Ner’s prediction of miners’ shift to other cryptocurrencies, investors may pull out and consider investing in other assets as well seeing the reaction following the slight fall in the price when SEC turned down the proposal for an ETF in July and August this year.
If the expected consequences of the fall do occur, will bitcoin be able to reach the predicted $50,000 value before the end of the year? Only time will time.