When Bitcoin (BTC) was soaring above $60,000, financial analysts 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, or even $20,000 would be a wise investment. However, now that the price has plummeted, these so-called “experts” are nowhere to be found.
So, investors are left to ponder whether the bottom has been reached or if they should wait for the price to drop further. Predicting price bottoms is a futile exercise. Instead, investors should focus on the fundamental reasons for investing in Bitcoin. Has the network and infrastructure surrounding Bitcoin improved or deteriorated?
To shed some light on these questions, Cointelegraph hosted a Twitter Spaces session with analysts Joe Burnett of Blockware Solutions and Colin Harper of Luxor Mining. Here are some key takeaways from their discussion.
Burnett believes that Bitcoin’s price is heavily influenced by Federal Reserve policy and its impact on equities markets. He cautions against relying solely on on-chain indicators, such as the Bitcoin hash ribbons, to determine the bottom. These indicators should be taken with a grain of salt.
Harper, on the other hand, sees potential in the growing partnership between big energy providers, oil and gas companies, and industrial-scale Bitcoin miners. He believes that if these companies start mining Bitcoin, it will become more widely accepted and less stigmatized.
Both analysts agree that layer-2 Bitcoin, particularly the Lightning Network, has significant growth potential. Burnett predicts that more people will demand final settlement of their Bitcoin, leading to greater adoption of self-custody. Harper sees the Lightning Network as the key to making Bitcoin a worldwide medium of exchange and separating it from its role as an asset.
While it may take time for these developments to unfold, the analysts are optimistic about the future of Bitcoin. To hear the full conversation, you can listen to the Twitter Spaces session.
Disclaimer: This article does not endorse any specific content or product and should not be considered investment advice. Readers should conduct their own research before making any decisions.