Bitcoin’s price has reduced to half in only two months due to many factors including Elon Musk’s tweet earlier this month. The most recent punch Bitcoin took in the face is the crackdown on mining in China. A large number of market participants agree that Bitcoin is losing its popularity in current situation.
Spreading some positivity, Saifedean Ammous, the author of ‘The Bitcoin Standard’ said that the present rise and fall of Bitcoin will not last longer. He said this in an interview with Kitco News. He said that Bitcoin cannot be banned by anyone. One can restrict himself from buying it but Bitcoin will keep operating. He thinks that Bitcoin has the ability to withstand 50 to 80% crash but in the end it will rise to glory. Its ability to bounce back is its biggest strength and point of attraction. BTC is like an arrow in a bow, the harder it is pulled back the farther it travels.
Ammous agreed that the ongoing crack down by Chinese officials on Bitcoin mining operations is perilous as more and more machines are going down. He told that Bitcoin will drop further and it will be a state of chaos for miners. He anticipated that some of the Chinese holders will eventually sell their Bitcoin in a state of panic.
In China the miners are also the holders of Bitcoin but now they are being forced to sell their stocks. On the date of writing, Glassonde’s data depicts that the miners are still keeping their Bitcoin as the outflow volume has touched the lowest in 2021. One of the possible reasons is that people are not buying BTC at the moment because they are expecting it to fall below the $29,000 line. If Bitcoin is not stabilized in a few days then Ammous’ prediction will eventually come true. The author was of the view that Bitcoin behaves in an opposite manner against gold. Political situations and banking systems have near to none impact on the digital asset.
Ammous concluded that despite the bad looking condition, it will become strong once again as it’s a ritual that it proliferates on distress. This has happened before and this will happen again that after getting hurt and knocked down, it will provide the writers a great story of comeback on its own.