Bitcoin Bottom Is In, Claims Chinese Billionaire Zhao Dong
BeInCrypto | Feb 14, 2019 07:39AM ET
It doesn’t take the work of a financial genius to know that 2018 was a rough year for Bitcoin (BTC) and the cryptocurrency market, in general. With the first and foremost cryptocurrency losing more than 80 percent of its value over the course of the year, the blood-letting has been extreme.
With recent news about hashrate increases, difficulty adjustments, and stability at the 200-week moving average, some have speculated Bitcoin has reached a bottom. One such speculator, Chinese billionaire Zhao Dong, suggests that now is the time to buy Bitcoin and HODL.
According to a recent interview by Forbes, Dong made it clear that the best time to buy is when apathy has entered the market. He stated:
If you and I believe in the future of bitcoin, so it is best to hold as much as possible when nobody cares.
Of course, the presupposition is that Bitcoin is here to stay as a viable form of currency and/or store-of-value asset. This belief is far-fetched, according to other economic sages — like Warren Buffet.
However, Dong’s basic premise is correct, whatever one may think of Bitcoin. Generally, the best time to load up on long positions of any asset is when public opinion about that asset is at its lowest. For example, investors who moved funds into the real estate market after the mortgage crisis have seen huge returns on investment.
Dong had previously predicted that Bitcoin would reach a stunning $50,000 by the end of 2021. However, he has since made it clear that the prediction was not assuming a linear path to that price point. Quite to the contrary, he said that he was stunned to see investors buying Bitcoin during the extreme bull market at the end of 2017 and the beginning of 2018. However, now that the bear market is in full swing, Dong is equally shocked that he has to convince people to invest in the coin.
In spite of the fact that he sees a bottom at these prices, Dong still believes that the bear market will continue throughout 2019. The heavily-negative public opinion after ‘The Crypto Winter’ of last year will require time to process. Nevertheless, he is convinced that the bottom is now and that patient holders will see returns on investment.
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Of course, Dong is just one of many who have made a wide variety of Bitcoin predictions in recent months.
Twitter (NYSE:TWTR) CEO Jeff Dorsey, billionaire investor Mike Novogratz, and many others have suggested that the market has reached a potential bottom.
Fundamentals appear to agree. The strong support of the 200-week moving average seems to show that Bitcoin has stability above $3,500.
Of course, there is also a slew of substantially-negative news in the marketplace, with many suggesting Bitcoin may cease to exist altogether. Those who hold these positions are generally biased in some capacity, either as fiat devotees or political interest groups.
Another year may be required for the negative press to subside, as Dong suggests.
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If this is the case, Dong’s advice is right: Buy and HODL. Eventually, the bulls will return and patience will be rewarded.
Think Bitcoin is at a bottom? Or is there more pain to come? Let us know in the comments below!
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