Bitcoin has seen tremendous volatility over the past few weeks, swinging back and forth between key support and resistance levels on a daily basis. Monday’s price candle alone reached $ 8,000, which is the largest on record.
only the old 8k daily range pic.twitter.com/FXXet2NzmJ
– nic carter (@nic__carter) January 11, 2021
The cryptocurrency is currently trading at $ 35,000, but dropped to $ 30,000 a few hours ago. Bitcoin also traded towards USD 42,000 late last week, which was a new record for the asset.
This volatility and growth has led some to compare Bitcoin to the Dotcom Boom and Bust.
Bitcoin and Crypto are like the 2000-2002 stock bubble?
Mark Cuban, billionaire investor, a Shark Tank “Shark” and the owner of the National Basketball Association (NBADallas Mavericks, says Bitcoin’s ongoing bull run resembles the Dotcom Bubble:
“Looking at cryptocurrency trading, it is EXACTLY like the internet bubble. EXACTLY. I think btc, eth, a few others will be analogous to the ones that were built during the dot-com era, survived the bubble and thrived, like AMZN, EBay, and Priceline. Many will not. “
He added that many Bitcoin and crypto investors will lose their capital, similar to what happened to the internet stocks in the past.
“A LOT of fortunes will be made and LOST along the way and we find out who has the stomach for HODL and who doesn’t. My advice ? Learn how to hedge. “
Looking at cryptocurrency trading, it is EXACTLY like the internet bubble. EXACTLY. I think btc, eth, a few others will be analogous to the ones that were built during the dot-com era, survived the bubble and thrived, like AMZN, EBay, and Priceline. Many will not
– Mark Cuban (@mcuban) January 11, 2021
Cuban has talked about Bitcoin for a long time, having said in the past that it may be wise for investors to keep a fixed percentage of their investments in the cryptocurrency. On other occasions, however, he compared the leading cryptocurrency to bananas.
There is still a lot of growth to be done
Cuban is not making a price prediction, although analysts say the market has room to grow.
Chamath Palihapitiya, a Canadian-American venture capitalist known for buying much of the Bitcoin stock, says BTC could reach $ 100,000-200,000 in the future due to the macroeconomic and geopolitical trends taking place today.
Other prominent investors in the space have made similar predictions, noting that macro trends for Bitcoin are still skew bullish.
Joe Biden, the incoming president of the United States, is expected to submit a trillion dollar stimulus plan that could eventually push the US dollar down.
Bitcoin will take advantage of this as a hedge against the devaluation of the US dollar. Yesterday, BTC crashed as the US dollar bounced, and today the cryptocurrency is starting to recover as the US dollar falls again.
Related reading: 3 Bitcoin On-Chain Trends Show A Macro Bull Market Is Growing
Featured Image from Unsplash Chart from TradingView.com Price Tags: xbtusd, btcusd, btcusdt Billionaire Investor Mark Cuban: Bitcoin Market Looks Like Dotcom Bubble