A UBS research analyst says Bitcoin hit rock bottom but could take more than two decades to reach the all-time high (ATH) in mid-December 2017 at $ 19,700.
The price of Bitcoin stabilized
Kevin Dennean, an analyst at UBS, says that Bitcoin has reached the limit, having gone through its bubble phase.
Dennean's conclusions come from the comparison of the price trajectory of Bitcoin 00 with other bubbles such as the Dow Jones, Shanghai A-shares, NASDAQ and Nikkei.
Commenting on the results of the comparison, Dennean says:
The argument here is that bitcoin has gone through its bubble phase and is ready to rise from the ashes as the phoenix, just as other assets and indices have done in the past.
The UBS survey is the latest argument pointing to the establishment of a long-term fund for high-level cryptomoeda by market capitalization. Bitcoin's performance in 2019, especially the significant rally in April, seems to be rekindling the debate over Bitcoin's price base.
Bitcoin has grown more than 40% since the beginning of the year. The cryptocurrency also seems to be holding the price at $ 5,000, despite some setbacks last week.
New ATH in 22 years
Although the UBS survey actually reaches the same conclusions as many crypto-interested parties that Bitcoin has hit bottom, Dennean reports that BTC will not reach its ATH for another 22 years.
This timeline also comes from the comparison of the BTC with the aforementioned stock markets. According to the Dennean report:
We were impressed with the time it took for other asset bubbles to regain their peak levels (up to 22 years for Dow Jones Industrials) and how the annualized returns from the valley to recovery are usually.
While it is true that the peak fall for Bitcoin valley is similar to that of the NASDAQ in 2000 and the Dow Jones in 1929, the BTC has been there many times before.
On each previous occasion, the BTC not only recovered, but also registered highs several major orders of magnitude in the following years.
Dennean's research seems only to compare the price crash of 2018 with the well-known stock market crashes. Bitcoin has already experienced five "bubbles", including a 93 percent drop between June and November 2011.
However, the rise of Bitcoin in the last decade was unprecedented. Nothing has has risen so fast and so much – which makes it incomparable even to the most successful companies and innovators.
Do you agree with the schedule BTC ATH given by the UBS researchers? Let us know your thoughts in the comments below.
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