The bitcoin price has been on a steep downward trend over the last six-months with bitcoin today dropping under the psychological $7,000 mark to trade as low as $6,900 per bitcoin on the Luxembourg-based Bitstamp exchange.
“We stand before the dawn of a new decade. As we look ahead, there is little doubt that the next one—the 2020s—will be the decade of crypto,” the cofounder of the U.S.-based Gemini bitcoin and cryptocurrency exchange Tyler Winklevoss boldly proclaimed on New Year’s Eve.
So far into 2020, bitcoin is down almost 4%, while top ten digital tokens bitcoin cash, litecoin, EOS, and binance coin are off by around 5%. Tezos is the biggest loser for 2020 so far, down almost 8%.
Bitcoin was up 90% for 2019 while iPhone-maker Apple’s share price climbed 85% and the tech-heavy Nasdaq added 35%.
“We’re at a critical stage in bitcoin’s price trajectory,” said George McDonaugh, co-founder and managing director at KR1, a cryptocurrency and blockchain venture capital investment firm told financial newswire Bloomberg following the new year downturn but predicted the bitcoin price will likely soon rebound to around $7,500 before climbing through to the middle of the year.
McDonaugh pointed to “strong fundamentals and the creation of new bitcoin wallets, among other things,” as the reason for his bullish stance.
Bitcoin and cryptocurrency watchers are this year looking forward to the launch of social media giant Facebook’s libra cryptocurrency, crypto platform Bakkt’s Starbucks project, and bitcoin’s May halving event—when the number of new bitcoin rewarded to miners will be halved.
Elsewhere, Twitter’s chief executive Jack Dorsey has grand plans for bitcoin and major U.S. bitcoin and cryptocurrency exchange Coinbase is working on some exciting new technology.
Meanwhile, some economists continue to warn against bitcoin and cryptocurrencies with one branding bitcoin a “pyramid scheme” on the first day of the new year.
“You only make money based on people who enter after you,” Tendayi Kapfidze, chief economist at online lending marketplace Lending Tree, said in an interview with Yahoo Finance, adding that bitcoin has “no real utility.”
“They’ve been trying to create a utility for it for ten years now. It’s a solution in search of a problem and it still hasn’t found a problem to solve.”