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BTCC Co-Founder Lee Hints At $333,000 Bitcoin (BTC) Prediction For 2021

Bobby Lee Issues Tweetstorm, Hints At Crazy Bitcoin (BTC) Prediction

Through a series of tweets, starting a so-called “tweetstorm,” Bobby Lee, the co-founder of BTCC and the brother of Litecoin creator Charlie Lee, hinted at an extremely bullish prediction for Bitcoin (BTC). This tweetstorm, which began on Friday, saw Lee, a long-time cryptocurrency proponent, pose optimistic hypothetical scenarios to his social media following.

Drawing lines between Bitcoin’s decade-long history of tumult, dismal bear markets, and jaw-dropping parabolic rallies, the crypto-centric entrepreneur claimed that if “history repeats [itself] perfectly,” BTC will first find its true long-term bottom by January 2019 and at $2,500, a further 30% drop from current prices ($3,600), somewhat echoing comments made by his peer industry insiders.

In Lee’s speculative scenario, once BTC bottoms at $2,500, the popular digital asset will enter a lull, which may keep crypto markets in a seduced state until late 2020. By late 2020, just months after the next Bitcoin Block Halving, the anti-traditionalist expects for crypto’s next monumental bull run to start to fester, and eventually embark on an unprecedented rally that will bring BTC above $250,000 a piece, over 100 times the price that it bottomed.  The prominent cryptocurrency player wrote:

[The next rally] would peak out in Dec 2021 at $333,000, and then crash back down to $41,000 in Jan 2023. Something like that?

In subsequent tweets, the BTCC co-founder further outlined the rationale behind this ambitious call, primarily referencing his expectation that the market capitalization of Bitcoin will surpass that of gold in due time, as a result of BTC’s classification as the second coming of the aforementioned precious metal, but in a digital semblance.

Lee explained that if BTC goes for $333,000 a piece, the market capitalization of the asset will reach $7 trillion, the assumed value of all gold on Earth. He wrote on the matter:

One more coincidence: If the next #bitcoin rally (in 2021?) does indeed reach $333,000, that’ll bring Bitcoin’s price to roughly that of #Gold, at $7 trillion each!

Although it would be hard to claim that this was an explicit prediction, considering Lee’s former comments lauding BTC and cryptocurrencies, it would be fair to assume that $333,000/BTC is a logical eventuality in his mind. Still, interestingly, Lee’s most recent forecast comes just months after he claimed that the next halving would only (relatively) send BTC above $60,000.

Not The Craziest Crypto Prediction…

While Lee’s prediction(ish) is undoubtedly somewhat ludicrous, especially considering that cryptocurrencies still have a ways to go, the Bitcoin Foundation board member isn’t the only industry savant to make such extravagant claims.

As reported by Ethereum World News previously, John McAfee, the eccentric multi-millionaire that founded McAfee Software and a long-time zealous anti-governmental figure, told CoinTelegraph that the bear market hasn’t been irksome, as the fundamentals of the Bitcoin Network are alluding to the fact that BTC’s true value is still “escalating tremendously.”

He explained that if “you track the usage curve [of Bitcoin],” $1 million per BTC by 2020 (his original prediction) is conservative, adding that eventually, BTC will be valued by its usage, not by speculative factors and investors.

Title Image Courtesy of Brian Garcia Via Unsplash

The post BTCC Co-Founder Lee Hints At $333,000 Bitcoin (BTC) Prediction For 2021 appeared first on Ethereum World News.

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BTCC Founder: The Next Bitcoin Halving Will Push Prices To $60,000

Bobby Lee: Bitcoin Set To Surpass $60k, It’s “Simple Math”

The cryptocurrency market has had its fair share of bulls and bears over the years. Bobby Lee, the co-founder of the BTCC exchange and Charlie Lee‘s brother, ostensibly falls into the former category, recently issuing a series of tweets regarding his undying bullish sentiment on Bitcoin.

On Friday afternoon, industry veteran and Bitcoin bull Bobby Lee revealed that he fully expects for the price of the foremost crypto asset to skyrocket to $60,000 “in the coming years.” Along with reaching $60,000 a piece, the crypto entrepreneur noted that the total market capitalization of the asset will surpass $1 trillion, which would put Bitcoin on par with the value of some legacy markets. He added:

That will be a huge for , and it‘ll lead to more price stability, higher global liquidity, and even faster adoption worldwide.

This statement alludes to the fact that $1 trillion will be an important mental barrier for Bitcoin to cross, as once it does, ‘nocoiners’ may begin to see that this nascent asset class holds true value.

While predictions are often educated guesses at best, Lee made it sound much more like a certainty rather than a forecast, which only goes to show that he is hard-set on portraying himself as a Bitcoin bull.

Mining, Halving, And Liquidity

However, Lee quickly received a lot of flak from Bitcoin pessimists, with many noting that his reasoning behind the prediction was shallow and vague at best. Seemingly responding to the criticism, the BTCC executive later issued a series of tweets that were meant to bring credence to his aforementioned prediction.

Lee first brought up the idea of mining and Bitcoin’s next halving, referencing his seven years of experience in the industry. he wrote:

When I started in 2011, daily global output (new BTC x price) was at $36,000. In 2015, this went to $1.8m. Today, we are at $12m. It means that globally, hashpower keeps going up, using up to $12m electricity costs.

The BTCC co-founder went on to note that if the Bitcoin Network’s hashrate continues to grow non-linearly, coupled with 2020’s block reward halving (900 BTC/Day), the price of the asset will be pushed up to new heights. Doing some napkin math, he noted that if the Bitcoin miners use up $54 million worth of electricity a day, Bitcoin could easily see the $60,000 price level that he mentioned earlier.

He added that this all goes back to the liquidity needs of this market, noting that if Bitcoin’s daily demand eclipses $54 million a day, prices will move to, if not beyond $60,000. Lee even noted that this price forecast is a case of “simple math.”

Oddly enough, he made no mention of altcoins, so it remains to be seen whether he holds this bullish prediction for the over 1,800 other crypto assets that are actively traded today.

Photo by Icons8 team on Unsplash

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Stormy Markets — Volume Picks Up As Bitcoin (BTC) Drops To $6,200

The cryptocurrency market has had it tough over the past days, with market leaders like Bitcoin and Ethereum posting near-20% losses over the past 7 days.

Bitcoin Breaks Through Support at $6,800, Hits Low of $6,175

“Stormy” could be a word used to describe the state of the market, but to some this description of the market may be a smidge too kind.

Bitcoin fell to nearly $600 from $7,100 just yesterday as the SEC announced that it would be delaying its verdict on the VanEck-backed ETF. While it broke the vital $6,800 support, which many technicians see as a key level which Bitcoin should hold, it looked like it found someplace to stand in the ~$6,500 range.

However, as the market moved into Wednesday morning, Bitcoin tumbled further, catching many investors with their pants down at the ~$6,175 level.

While the aforementioned decline from $7,100 to $6,500 made sense, many were caught off guard with this drop, with it being unclear whether there was a catalyst for this most recent $300 candle to the downside.

While Bitcoin may not run into any support in the low-mid $6,000 range, it is important to note that Bitcoin’s break of the $6,800 level could pose an issue. Prior to Bitcoin’s most recent recovery, where the price of the asset rose from $5,800 to a high of $8,450, Bitcoin struggled to surpass $6,800 on multiple occasions, which outlined it as a level of heavy resistance (and support subsequently).

As reported by Ethereum World News previously, Bart Smith, the head of digital assets at Susquehanna, has continually highlighted the $6,800 as a ‘make or break’ level. Speaking with CNBC Fast Money panelists, Smith stated that Bitcoin needs to establish higher lows (and higher highs), while also holding above $6,800 to make a move higher in the future.

For now, a bounce may not be in store for the price of the so-called “digital gold.”

Market Establishes YTD Low

Altcoins followed Bitcoin downwards, with a majority of altcoins actually underperforming the foremost crypto asset. In fact, Bitcoin dominance has risen to a tad over 49% at the time of writing.

Despite the fact that Bitcoin hasn’t hit a year-to-date low, the collective value of the cryptocurrency market has hit a YTD low at a dismal $220 billion. While the fundamentals may be open to question, one thing remains certain, this being that volume is returning with this move downwards.

Publicly-available exchange volume is currently shown as $16 billion in the past 24 hours, which is up by nearly 50% than the figures shown approximately 48 hours ago.

Nonetheless, some investors remain hopeful, even though the market has established bearish figures. Take a look at the following tweet from Bobby Lee, the co-founder of the BTCC exchange and a brother to Litecoin’s founder, who noted that a crypto bottom may not be in, but he remains bullish on the industry.

Title Photo by Nikolas Noonan on Unsplash

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Bobby Lee, ‘BTC Maximalist’: Bitcoin’s Value Is in the Eye of the Beholder

This interview has been edited and condensed.

Recently at BlockShow Europe 2018, Cointelegraph got the chance to speak to Bobby Lee — co-founder of Chinese crypto exchange BTCC and a board member at the Bitcoin Foundation —  about what he’s been up to in the crypto space since BTCC shut down last fall.

Molly Jane: In the past few months, Chinese crypto regulations have steadily been increasing, from the ICO ban in the fall of last year, the January ban of “exchange-like services,” and the February ban of foreign exchanges. With your experience working in China in mind, do you think that, in the future, China will ever be more open and welcoming to the crypto community?

Bobby Lee: It’s possible. I’ve said it before and sometimes people would take it the wrong way. I think China has room to change their policies. It could happen within a few months, it could take a few years, it could take decades. China is a mystery when it comes to regulation and policies because of the former government being that kind of government. It’s not very transparent in terms of what they want to do with crypto.

Nothing is permanent in China.

Even the one-child policy, it eventually got overturned after many decades. So, [the] Bitcoin ban, the ban of exchanges, the lack of licensing, the lack of regulation […] I think that’s here to stay for the short term, but it’s hard to say if that will get lifted any time soon.

MJ: Do you see any countries that are doing it right in terms of crypto regulation?

BL: None of the big countries. Or none of the big, popular, famous countries are doing it right, yet. I think it’s a very tough terrain to navigate, if you will. Some of the small countries who are more risk-prone, they are doing it right. They are doing it by a laissez-faire approach. They are welcoming companies to set up a jurisdiction in their country, and to set up entities and licensing it all. Some are doing it more aggressively than others. That’s just how things are. Because different countries will choose different paths, whether they will take a strong adoption approach or whether they will take a more reserved wait-and-see approach. I think China is of the wait-and-see approach.

MJ: Could you tell me a bit about what has happened to BTCC since the increased crypto regulations in China?

BL: BTCC got acquired. An investment group in Hong Kong acquired the company late last year and closed it earlier this year. There’s a new management in place. I’ve stayed on as an advisor to the company, so I’m just helping them out on some strategic projects. In terms of their actual day-to day stuff, I don’t have that visibility to share.

MJ: What are you doing now instead?

BL: This is my gap year, taking some time off, speaking at conferences. I’m going to play some poker at the World Series this year in Las Vegas, and then I want to start [writing] a book about Bitcoin.

MJ: What inspired you to want to write a book about Bitcoin (BTC)?

BL: I think this year I finally have more time on my hands. I’ve always wanted to potentially write a book, be an author. And given all the knowledge about Bitcoin and crypto that I’ve accumulated over the last few years, I have a certain insider’s perspective on the cryptocurrency. And having a lot of experience speaking at conferences, talking to people, answering their questions, I have a unique perspective on what kind of questions they ask. I want to put that all together into a book. Basically, it’ll be for the general audience, an initiative, if you will, to explain the impact of Bitcoin, why it is meaningful to our society and what the future is.

You can watch the interview here:

[embedded content]

MJ:  What’s the question you get asked the most at conferences?

BL: In cryptocurrency conferences, people ask me what’s my price prediction, what assets I hold, and what crypto coins I hold. They ask why Bitcoin is valuable when governments don’t endorse it. That’s a sort of the negative perspective. The non-believers think that for crypto to have a future, governments have to endorse it or support it.

MJ: Speaking of that, you’ve said in some interviews that one of the reasons why Bitcoin is not a bubble is because it has inherent utility. Could you expand more on that?

BL: Again, the utility is only [in] the eye of a beholder who finds it useful. But Bitcoin is very, very useful as a form of payment for people who are separated by distance or by time. Meaning that, if people want to send large or small amounts of money when they are geographically apart — usually long distances across time zones, across countries and jurisdictions — Bitcoin is a very efficient way to send value across, as long as both people value Bitcoin and understand that its market price varies.

Bitcoin is also useful for sending through time. If you think about it, Bitcoin investors — people like myself, and possibly you and others, who invest in Bitcoin — what we’re really doing is we’re saying,

“Let me put $1000 into this Bitcoin machine, and I will send it to my future 10 years later.”

Or five years later. Or two years later, right? It doesn’t work for the short term because this thing is volatile. If I send it to me a week later, I will open up and sell Bitcoin, it may not achieve $1000. But certainly five years, 10 years – now we’re talking, where it can be worth a lot. That’s the investment, sort of, a through-time aspect of Bitcoin.

MJ: You said once in an interview that you wouldn’t touch any altcoins, but did add that you could change your mind in the future. Do you still consider yourself a Bitcoin purist?

BL: I’ve said that many times, both in recent times and over the years, I’m a Bitcoin maximalist, I’d say. I think that’s what they call it. Maybe a purist. The only four coins I have and hold are Bitcoin, Bitcoin Cash (BCH), Litecoin (LTC) and Ethereum (ETH). Those are the only things I hold. Everything else I consider an altcoin and, of course, the tokens themselves. I don’t touch decentralized tokens issued by companies and groups.

MJ:  Last question. Very recently there was a celebration of Bitcoin Pizza Day. My question is, what’s your favorite kind of pizza?

BL: My favorite pizza is pepperoni. Pepperoni and cheese.

MJ: And have you ever used Bitcoin to buy a pizza?

BL: I haven’t. What we did do at BTCC was [to ask] how many Bitcoins you spend to buy pizza for the whole office. And at one point it was over five Bitcoins, last year it was like three or two Bitcoins. And this year, certainly less than one Bitcoin. It’s been amazing to see that. Coming from, what is it, 10,000 Bitcoin, now down to just less than one Bitcoin to feed the whole office.

MJ: Thank you so much for speaking with us!

BL: Thank you!

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So Long, $10k: Bitcoin Price Unstoppable As $11,000 Becomes New Benchmark

Despite hitting $10,000 among major exchanges just hours ago, Bitcoin has already tackled $11,000 as markets show no signs of slowing.

The first hours of Wednesday saw $10,000 come and ago on Coinbase, Bitstamp, Bitfinex and others, with trading continuing to just below $10,700 before a correction.

That correction was short-lived, however, with Bitcoin then passing that mark to first hover around $10,750 and then continue to the next barrier soon afterwards.

Both Bitcoin’s rate of growth and comparative lack of volatility are unprecedented in its history.

Prices are up almost 1500% in 2017 alone, with expectations by even the more optimistic forecasters now seeming modest.

New bubble warnings in the mainstream press contrast with investment sources at a loss as to how high Bitcoin could go in 2018.

BTCC CEO Bobby Lee even took a randomized approach, basing his $48,000 prediction on the number of his Twitter followers.

Meanwhile, Tone Vays, the technical commentator who has seen his short-term tips come true with remarkable accuracy in recent months, said that $12,000 would now come “quickly” due to profit takers having completed their activity.

At the time, Bitcoin was still at $9900.

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Bitcoin Isn't 'Too Expensive,' Says BTCC Boss Bobby Lee

“There was a joke on social media, some guy lost his sex drive because he sold bitcoin after the China ban.”

And with that, Bobby Lee, the CEO of China’s oldest cryptocurrency exchange BTCC, launched into a scheduled speech extolling the virtues of bitcoin. Coming at the end of day one of the two-day technical conference Scaling Bitcoin last weekend, the talk amounted to a pep rally largely aimed at classical bitcoin bogeymen – the state, ICO scammers and those who don’t get it.

But while he was speaking to just a few hundred of the foremost technical experts on the subject, it’s ironically those in the wider world who Lee might have been better off addressing in his full remarks.

“Bitcoin’s value does not come from the endorsement, acceptance or regulation from governments. Bitcoin’s value comes from the inherent failures, limitations and inconveniences of the fiat money system,” Lee said in a tone befitting a grade school science teacher.

From there, he proceeded to defend the price of bitcoin – up more than 600 percent on the year – not as a bubble, but as evidence the protocol is proving its utility as the best way to hold value in the digital age.

Far from being tepid about the market, Lee argued those who have been on the fence should invest in bitcoin today, telling the crowd:

“The last year, bitcoin has proven itself. What I tell my friends now, is as long as bitcoin is under $10,000, it’s your chance to get in. For those of you [who] think it’s too expensive, if you look in the rearview mirror, bitcoin has gone up 10x in the last year.”

Lee went on to describe bitcoin as “very cheap,” arguing that prospective buyers shouldn’t look at the current price, but rather conceive of the potential the protocol could have when more of the world’s assets migrate to the blockchain.

“Bitcoin is like buying gold at a 98 percent discount. If you think it’s too late, if I had thought that back in 2012, I would not own bitcoin,” Lee continued.

Jam-packed with no shortage of attempts to entertain, the speech went on to outline common “mistakes” made by more novice bitcoin traders, including four that Lee cited as the most detrimental. These included: “indecisiveness,” “not buying enough,” “selling after a small gain” and “selling during a panic crash.”

“When you first learn about bitcoin you hesitate, the answer is to not be hesitant,” he said.

On China

Still, the talk was not without its more serious moments.

For example, Lee opened up at length about the difficult situation for his startup, which has pivoted internationally after finding itself on the receiving end of the negative actions that can occur when bitcoin “challenges governments.”

This September, the Chinese government moved abruptly to shut down ICOs (the sale of custom cryptocurrencies for fundraising), at the time, allegedly acting behind the scenes to take exchanges offline.

In response to the news, the market reacted strongly – dropping below $3,000 after hitting a new all-time high of $4,000 in the weeks before. Lee went on to note that “no one dares talk about” what happened next: the effective doubling of the price.

And while no formal ban was made, Lee affirmed his belief that China still “doesn’t want to see bitcoin anymore,” and that to his knowledge, no trading or price information can be displayed to consumers.

“No ICOs, no bitcoin, ethereum, litecoin, no more. That’s the rule right now. I don’t know where you buy bitcoin in China. It’s like buying guns and pornography in China,” he said.

That’s not to say he doesn’t see the market ever coming back, but he’s not optimistic about the timeline.

State cryptos are coming

While there was focus on China, the remarks are perhaps best seen as part of a broader point: state actors will and are trying to infringe on bitcoin.

Lee made clear he believes the actions in China are simply the first sign of what the bitcoin community has long suspected will occur, that central banks will try to issue “digital crypto versions of their money system.”

“Those will be state-controlled, state-supplied. Today bitcoin accounts are freely generated, those will be assigned to you and assigned identity. I don’t think we’ll be close to a decentralized cryptocurrency,” he said.

Lee, however, was adamant in his belief that bitcoin – and by extension, its developers or businesses – shouldn’t bend the knee in response.

He concluded:

“I don’t think bitcoin needs to cater to any culture or nationality of its users. Bitcoin is global, it cuts across all language and cultural barriers.”

Bobby Lee image via Pete Rizzo for CoinDesk

The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at news@coindesk.com.

Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

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Ban All Crypto ‘Dealers’, India Committee Reportedly Tells Government

India is reportedly considering Chinese-style exchange ban for Bitcoin and cryptocurrency according to local media reports.

A brief article in today’s Economic Times names an unknown government “committee” as having advised lawmakers to “close” merchants and other “dealers” active in Bitcoin and altcoins.

No background reasoning was given for the committee’s recommendation, which comes as Bitcoin flourishes in both price and volume in India and in permissive jurisdictions around the world.

Hesham Reyman, CEO of Indian exchange Bitxoxo, told the publication the government should focus on “curbing” sales of cryptocurrency involving cash instead of seeking a ban.

At the same time, Forbes India this week carried a full feature on fellow major exchange Zebpay, which is currently adding around 200,000 users to its app-based trading platform every month.

Full-fledged regulation is several months into the research phase in India, a program at odds with the committee’s alleged desires.

“In the event of their closure, buyers can always head out to foreign exchanges,” anonymous experts told Economic Times, appearing confident that the cross-border alternative would be both easily accessible and free of consequences for private traders.

In a Q&A session Wednesday meanwhile, Chinese exchange BTCC CEO Bobby Lee suggested China was unlikely to permit exchanges to operate domestically in the foreseeable future.

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Bobby Lee Divides Reddit AMA as Talk Centers on SegWit2x

BTCC CEO Bobby Lee’s public AMA largely focused on SegWit2x Wednesday as his position causes controversy.

Answering user queries during the recurrent Reddit Q&A session, Lee said that BTCC would potentially accept the SegWit2x chain should it receive requisite market support.

He added BTCC’s mining pool would continue mining BTC and would shortly start mining Bitcoin Cash (BCH).

“…We will support more than one chain if there’s enough user demand and if doing so makes economic sense,” he wrote responding to one user.

“BTCC supports altcoin mining. Earlier this year, we started mining Litecoins and we will start mining Bitcoin Cash soon. In the future, if the Bitcoin Core Legacy (BCL) chain survives, we will consider providing BTCC Pool support for that based on market demand.”

Lee’s more accommodating position on Bitcoin’s major hard fork echoes that taken by fellow major exchanges Coinbase and Xapo. Others, however, have come out firmly in support of Bitcoin Core, including mining pools originally signed up to Barry Silbert’s New York Agreement, the precursor to SegWit2x.

“The upcoming SegWit2x feature is an upgrade to Bitcoin, and yes, there is a change in consensus rules this time,” he continued in another response.

“Per Bitcoin rules, Bitcoin will continue to be the chain that has the most accumulated hashing power and produces the longest valid Blockchain.”

Lee had previously caused contention elsewhere with his personal 2x outlook, with his brother, Litecoin creator Charlie Lee, taking him to task over the issue on Twitter.

Meanwhile, the AMA also included speculation as to the future of exchanges in China. Lee’s BTCChina formally closed down last month.

Discussing rumors Chinese exchanges may reopen at a future point, Lee remained downbeat. He wrote:

“I’ve also heard those rumors, but from what I can see here on the ground, there are no plans for Bitcoin exchanges to reopen in China.”

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Sell ‘ShitCoin2x’ Immediately for Best Profit: Bitcoin Exchange BitMEX to Traders

Cryptocurrency trading platform BitMEX has told users to dump SegWit2x Bitcoins “immediately” following November’s hard fork.

In a dedicated trading strategy blog post, BitMEX, which earlier this month signaled its opposition to all hard forks, described SegWit2x as a “shitcoin.”

“He who sells first, sells best,” the post advises in reference to divesting oneself of non-Core chain coins.

“On the ex-date (expected to be on or around Nov. 20), you will receive B2X in a 1:1 ratio. These B2X coins should be immediately sold for USD. At the same time, the futures should trade at a discount or negative basis.”

BitMEX confirmed that its own index would not include 2x coins.

As the hard fork’s snapshot date remains several weeks away, community consensus still strongly correlates Bitcoin’s recent price highs to SegWit2x resistance.

A poll by BTCC CEO Bobby Lee Sunday returns hard fork-related opinions about why Bitcoin had broken $6,000, with responses consistently referring to SegWit2x’s “failure” to gain sufficient support.

BitMEX adds that the majority of Bitcoin exchanges are unlikely to credit users with 2x balances.

“Most exchanges that offer margin trading will not force shorts to deliver or cover B2X. Forcing a large number of shorts to cover in the illiquid B2X spot market could be disastrous,” the blog post concludes.

“Therefore, most exchanges will not credit Bitcoin lenders with B2X or force Bitcoin shorts to deliver B2X.”

Meanwhile, exchange HitBTC has been offering SegWit2x futures contracts and major wallet provider Xapo has confirmed its willingness to rename the 2x chain ‘BTC’ should it gain majority support.

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Bitcoin’s Price Declines Anew, Hits Three-Week Low

The price of Bitcoin price has declined below the $4,000-level, extending its losses in overnight trading to reach a three-week low of $3,275. This represents a 35% drop from its high of $5,000.

Put differently Bitcoin is now trading virtually flat month-on-month for the first time since mid-2017.

Possible reasons for the decline

There are several possible reasons behind the recent drop in the price of the number one virtual currency. One of these is the alleged plan by the government of China to ban the activities of various cryptocurrency exchanges in the country. The government has not formally announced any plan as such, but much rumor and innuendo abound.

Charlie Lee has been tweeting about this lately. He is the brother of BTCC CEO Bobby Lee, so many believe he has insights into the government’s plans toward Chinese exchanges. When critics pointed out that BTCC competitors OKCoin and Huobi had announced they were still open for business, Lee chortled:

 

Another possible reason for the price drop is the sharp criticisms made by JPMorgan CEO Jamie Dimon on Bitcoin.

Counterpoints

However, there is the possibility that even if China heavily regulates exchanges in the country, it will have small effect on Bitcoin in the long term as the over-the-counter (OTC) market for the digital currency will continue to post solid performance. China also makes up a much smaller percentage of global trading volume than in the past.

The negative comments by Dimon on Bitcoin are not also surprising since if Bitcoin goes mainstream, Dimon is likely out of a job.

Some on the /r/bitcoinmarkets subreddit, such as joyrider5, believe this is simply a technical pullback. The price touched an important psychological level ($5,000), possibly leading to a sizeable amount of profit-taking. It’s important to remember that nothing can go straight up forever, and that corrections are healthy in the long run.

Some believe that the price of Bitcoin will reach a low of $3,000 which will be followed by a rally back into the low-$4,000s and possibly beyond. Until then, Bitcoin will only regain its bullish position if it surpasses the $4,400 level.