So far in the first half of the year, bitcoin has been getting a beating; a beating so bad that it lost 70% of its value to hit bottom at around $5,800 from over $19,000. This has been a terrific time for bitcoin pessimists who’ve been running around calling it a scam and proclaiming ‘doomsday’ for investors had arrived. Investors were having the worst time ever, shedding millions and billions of dollars in days. The one thing that the crypto community and investors really learned during the last few months is that bitcoin and many of the cryptos in the market, don’t take bad news well. News of investigations into ICO’s, exchange hacks and regulation of cryptocurrencies always proved costly to the market. However, right at the end of June, the end of the half-year mark, bitcoin bounced to sit at just above $6,300 and by all accounts, it doesn’t seem like it will be looking back again. With the first half of the year behind us and the rest of the year to look forward to, what can we expect in July?
Graphics Cards Prices Expected To Drop
According to a report published on Friday 29 June, graphics card prices are expected to drop by 20% in July. This has been as a result of slow gains in the cryptocurrency market. For many miners, the price of graphics cards used to mine coupled with high electricity costs have made it almost impossible to make profits. Due to the low demand for these graphics cards, the price is expected to drop by 20%. ASICs have also seen reduced sales, and the trend is expected to continue through July. Small and medium miners are reportedly halting operations while the prices find their footing while large firms are reducing on their purchase of new mining machines.
If the prediction comes true, it could mean one of two things. One, the creation of new coins goes down and demand for existing coins goes high which keeps prices of bitcoin and most cryptos stable. Two, when bitcoin prices start to rally -which is highly likely- before the graphics card bounce back to their original price, miners eat up the one-time price deal on the table. This could see a whole new bunch of players in the mining industry while existing players increase their mining power.
Bitcoin Prices Expected To Pick Up
Bitcoin optimists expect that bitcoin prices will start to rally in July. Rightfully, it has started at the right foot given that at the time of press, it is around $6,300. Experts believe that bitcoin is still in its adoption stage even though it has been around for almost a decade. They believe that what was experienced last year was just the beginning, and what we have seen so far this year is just a bump in the road to a whole lot of greatness. Many predict that it will hit an all-time high of $25,000 and some go as high as predicting $50,000 before the end of the year.
For this to be possible, a few odds have to play into bitcoins favor. For one, bad news have to stop, and gladly none is expected any time soon. In fact, just days ago the cryptocurrency market received a boost when Facebook lifted its ban on crypto ads. Although this didn’t see the prices improve by much, it did restore faith to investors over the future of the market. So far, bitcoin and its related cousins have been receiving bad news after bad news that even when there is good news, no one seems to note, a trend expected to change in July.
Bitcoin might not adjust and recover in the next four weeks to reach its full potential but experts reckon that its recovery and success is inevitable. Like a wounded bird, bitcoin shall heal its wounds and fly again.
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