In a time when Bitcoin (BTC) was soaring above $60,000, experts confidently assured investors that the price would never drop below its previous all-time high. They even suggested that buying at $50,000, $35,000, and $20,000 were all great opportunities. However, these so-called “experts” have now gone silent, leaving investors to wonder if the bottom has truly been reached. Should they wait for the forecasted drop to $10,000 or seize the opportunity to buy Bitcoin and altcoins now?
Predicting price bottoms is a futile task, but what truly matters is whether there are fundamental reasons to invest in Bitcoin. While the price has fluctuated, it is crucial to consider Bitcoin’s network fundamentals and the infrastructure surrounding it as an asset. This is why Cointelegraph recently hosted a Twitter Spaces conversation with analysts Joe Burnett of Blockware Solutions and Colin Harper of Luxor Mining. Here are some key takeaways from the discussion.
Burnett emphasized that Bitcoin’s price is heavily influenced by Federal Reserve policy and its impact on equities markets. He cautioned against solely relying on on-chain metrics like the Bitcoin hash ribbons indicator to determine if the bottom is in. According to Burnett, it is necessary to analyze these metrics in context and not jump to conclusions.
Harper discussed the growing partnership between big energy providers, oil and gas companies, and industrial-scale Bitcoin miners. He highlighted the positive impact this collaboration can have on Bitcoin, making it more widely accepted and less stigmatized. However, he acknowledged that this depends on the politics of the oil producer involved.
When it comes to Bitcoin mass adoption and the growth of the mining industry, Harper expressed optimism. He believed that over time, more people will demand final settlement of their Bitcoin, leading to an increase in self-custody. Burnett echoed this sentiment and emphasized the potential of the Lightning Network as a scalable solution for Bitcoin’s use as a global medium of exchange.
While it may take several years, both analysts agreed that layer-2 Bitcoin has significant growth potential. They encouraged investors to consider the long-term outlook and the role of regulation and self-custody in driving the adoption of the Lightning Network.
Ultimately, investors should conduct their own research and make informed decisions. Cointelegraph does not endorse any specific content or product mentioned in this article.