After a period of relative consolidation, the Bitcoin price is reaching a 2-month low around the $7,500 mark. On September 23rd, the Bitcoin price was standing strong at the $10,000 mark and had been doing so for months. The lowest price for the asset in the past 4 months has been around $7,900, and it has intermittently reached highs of $12,000.
It is impossible to accurately assert what is responsible for Bitcoin price highs and lows. The introduction of futures contracts has meant that any actor can come along and open an account, potentially affecting the Bitcoin price to a large extent.
Bitcoin futures are not physically settled, they are cash-settled. This means that the price of Bitcoin can easily be affected by people using the fiat system (cash and printed money). In contrast, with a physically-settled futures contract, Bitcoin would be delivered to the other party upon the expiration of the contract.
This would mean that price manipulation could not take place, as asset delivery would keep the actors honest. They would need to deliver the asset at the expiry date. Because Bitcoin futures are cash-settled, the price of the asset can be easily manipulated (or ‘tainted’) using fiat money.
This is what has happened, and is a large reason why the Bitcoin price underwent such a decline. The vast amount of Bitcoin trading occurs through ‘whales’ on large exchanges. It is not done by regular citizens who wish to purchase goods and services.
While some may claim that Bitcoin is a doomed and manipulated technology, this is not the case. Bitcoin retains the same functionality that it always has, in much the same way that Gold and other commodities retain their use-value.
The market value is different from practical use-value. In times of crisis and volatility, people will become accustomed to the practical use-value of Bitcoin. It is easy to send, pseudo-anonymous, fast, and incredibly cheap. It trumps fiat money in every possible way.
All this could translate to an increase in the value of Bitcoin for 2020 and beyond. But in the meantime, the price of Bitcoin has been suppressed and may or may not be an actual reflection of the asset itself. It is a fair estimate that Bitcoin has significant upside potential and that it will potentially rise to new heights in 2020 and beyond.
There are claims ranging from $50,000 all the way up to $1 million. Most of these claims have been made by Tom Lee and people with significant ‘skin in the game’, as they are heavily invested in the asset. Still, there is no harm in investing in the disruptive technology that is symbolic of fair finance and a more equal world for all.