In the past few years, the bitcoin price has been on a roller coaster. In 2017, it surged to record its all-time high before receding and sinking into a persistent crypto winter of 2018. Bitcoin proponents still believe that great things are still ahead but for now, a lot is happening in the market.
The biggest crypto experienced colossal losses on September 24 after a flash crash in the bitcoin network hash rate. According to technical analysis, Bitcoin is expected to test the psychological $7,500 support zone. However, not everyone is worried by the latest drop below $8,000. Mark Yusko, Morgan Creek Capital CEO, says that everyone interested should ‘buy it.’
He was replying in an interview when CNBC’s Melissa Lee asked him about the 15% Bitcoin price drop. He even went ahead to compare Bitcoin to the tech behemoth Amazon. According to Yusko, Bitcoin would still prove to be a great buying opportunity even if its price plummeted towards $5,000.
The hedge fund manager is quite confident and explained that investors must never be distracted by the daily price moves however violent or volatile they may be. He said:
“The daily price of Bitcoin doesn’t matter. It’s been alive for ten years. In every year (other than one – 2015), it made a higher low. The market cap has grown every single year.”
Yusko refers to the fact that all fundamental indicators of Bitcoin including wallets, transaction size, usage, and block size are reaching new highs always. Therefore, it is evident that the network is gradually becoming more robust and its value is rising.
The Amazon Similarity
The bitcoin bulls and proponents are still hopeful that Bitcoin will stabilize and surge to greater heights in the coming years. Notably, there is a new narrative going around that the crypto will manage to replicate the gains and successes of the dot-com bubble favourites like Amazon.
Yusko is quick to point to the company’s shares as an example that the road to new highs always features many hiccups. Amazon went public twenty years ago. So far, it has had double-digit draw-downs every year which also includes 2019. Yusko added:
“What was the right time to sell it? Never, who has owned it since the IPO till today? Jeff and his mom and dad”
For now, Bitcoin needs to replicate the positive enthusiasm that its community has about it if it is to get back on course to registering new all-time highs any time soon.