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Tug of war ensues between Bitcoin bulls and bears; Who will win?

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24
Jan
  • The recent drop in the crypto market has sparked debate between Bitcoin bulls and bears, each trying to predict a future they believe in.
  • Most BTC investors in China plan on buying the dip, meanwhile, Mike Novogratz and Peter Schiff faced off on Twitter.

The recent crypto market bleed has seen lead asset Bitcoin (BTC) drop nearly 50 percent below its all-time high. On the day, BTC is trading at an 18.6 percent slash in the week and a six-month low of $35,093. The red bars have sparked a heated debate among the bulls and bears, each standing up to his conviction.

For Chinese crypto investors, a recent survey conducted on microblogging platform Weibo (China’s equivalent of Twitter), shows that the majority support the “buy the dip” mantra. 35 percent of them said they would purchase Bitcoin if it fell below $30,000. More than 60 percent said they would buy the digital asset at current prices, while 22 percent said they would opt for Ethereum.

These entry points are based on the generally low psychological expectations during periods of great dips, the investors say. Of note, crypto trading still goes on in the authoritarian nation, despite last year’s ban on everything crypto-related.

A $1M bet on Bitcoin price

On crypto Twitter (CT), Bitcoin proponent and Galaxy Digital CEO Mike Novogratz advocated for the cryptocurrency with a significant bet. This came after Bitcoin skeptic/ gold bug Peter Schiff delivered a tirade on the recent drop in the crypto market. The CEO  of Euro Pacific Capital Inc., said Bitcoin cannot be compared to gold among other reproves such as:

The only other risk assets to which Bitcoin will ultimately prove to be correlated are 17,000 worthless #altcoins!

Novogratz responded with:

Peter Schiff, I’ll bet $1m to the charity of either of our choices that $BTC is higher than 35k a year from now. You on?

When Schiff failed to respond, Novogratz revised the bet to 1,000 push-ups saying, “I just want you to have some skin in the game vs just words.”

Additionally, Novogratz speculated that Ethereum (ETH) would find support at $2,600. Schiff commented that this was already a failed speculation, asserting that ETH is headed to sub $1,000 levels. At press time, ETH was trading at $2,459.

Conflicting views

Twitter’s pseudonymous and controversial crypto analysts Cryptowhale is another bear who thinks this market crash will be the mother of all crashes. His supporters have taken a hit on Bitcoin praises as an inflationary hedge and non-correlated asset. 

Nonetheless, other bulls such as Alex Gladstein, CSO of Human Rights Foundation, still hold steadfast to BTC’s potential as an inflationary hedge. Another analyst, Cowen, puts his worst-case scenario of a $20,000 price in 2022, but is still optimistic of “100 to 200K by 2023 – end of 2022 at the earliest.” Meanwhile, investors can DCA (dollar-cost averaging) into the market, he adds.

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