Will Bitcoin go back up in price? Absolutely. And how about other cryptocurrencies? Some will and others won’t survive a prolonged crypto winter. You see, the crypto markets are the very definition of a news-driven market. A little bit of good news, and markets go up. But a little bit of bad news, and prices can tank quickly.
If you’ve been following the crypto markets lately, you know there’s a whole lot more bad news than good news going around. Terraform’s LUNA project crumbled. Celsius Network paused all withdrawals, swaps and transfers between accounts. And that’s not the only exchange with questions of solvency looming around it. Coinbase recently let go of 18% of its workforce. Gemini has made similar moves. And there are rumors that plenty of other exchanges could be even worse off.
So yea, there’s not a lot to be positive about when it comes to crypto right now. That’s why we’ve taken a long view on crypto for the time being. We’re not holding out hope for any major short-term upward movement in price. But in the next couple years, it’s quite possible Bitcoin will not only go back up, but will exceed its former highs.
That being said, crypto investors recently got a little much-needed good news… In a roundabout sort of way. Talking head Jim Cramer was recently on CNBC’s Squawk Box, where he said:
Crypto really does seem to be imploding. Went from $3 trillion to $1 trillion. Why should it stop at $1 trillion? There’s no real value there.
This might sound like bad news. But those that have been following Cramer’s crypto advice think otherwise…
Will Bitcoin Go Back Up? Maybe Sooner Than We Thought
Say what you will about the host of Mad Money and his investment advice. We’re sure he’s offered some good information over the past 17 years. But crypto hasn’t proven to be Cramer’s forte. In fact, he’s garnered some notoriety for his coverage of crypto markets.
He recommended investors take up a sizable stake in Coinbase (Nasdaq: COIN) stock when it was trading around $250 a share. Shares of the popular exchange haven’t fared so well since then. They’ve fallen to below $60 a share.
On top of this, Cramer first noted he took a stake in Bitcoin in December 2020. He then mentioned he sold most of his stake in Bitcoin in June 2021. His reasoning was that the price wasn’t going up due to structural reasons, regulations and cyberattacks. Whoops. A handful of months later, Bitcoin hit its all-time high of $69,000.
More recently, back in April, he prognosticated that Ethereum was likely to see a 40% short-term gain. Since then, Ethereum has fallen roughly 60%. So again, Cramer doesn’t exactly have a marvelous track record when it comes to crypto. So will Bitcoin go back up in the coming weeks? Maybe months? That’s a hard… maybe. But we’ll certainly be rooting for the “Cramer Effect” to take hold of the crypto markets again.
But while it would be funny – if not hilarious – if ol’ Jimmy Cramer completely missed the mark yet again, it’s the opposite of a sure thing. More realistically, we’re anticipating Bitcoin (and the crypto markets as a whole) to be pretty quiet for the next couple of years.
This, of course, offers an interesting long-term investment opportunity. Should folks be investing in crypto right now? Well, that depends…
Some Tokens May Work Out Better Than Others
Of late, we have seen a number of random tokens outperforming the crypto markets at large. That’s not terribly difficult right now, but still…
For instance, Numeraire (NMR) has been on a solid run of late. And before that, Chainlink, XCAD and MoveZ all went on impressive short-term runs. Some of these tokens jumped up as much as 50% in value. But those gains were short lived for the most part. But this serves as a reminder that even in a sideways market, there’s money to be made. Even for short-term traders.
Quick moves like these are best capitalized on by crypto day traders. They can also be tracked using crypto trading bots. These programs can help take some of the guesswork and chart analysis out of the equation. That being said, there’s less certainty that microcap tokens like these will survive a prolonged downturn in the market. So they may be good for some possible short-term gains, but they offer a bit less assurance for the long haul.
These price movements also help remind us that there’s still some life in the crypto markets. Even right now. So will Bitcoin go back up? There’s plenty of reason to believe it’ll have its turn again… Just like the smaller tokens mentioned above.
However, we’re not suggesting an inevitable demise of any token. For all we know, they could outlive your grandkids. But, if we were to put a sizable investment into any token right now, it would have to be one with some specific characteristics.
Four Elements of a Long-Term Crypto Token
- Look for a strong use case. Any crypto worth its salt should have a good reason to exist – beyond simply helping investors head “to the moon.” Reading a token’s whitepaper usually offers the best explanation of its use case (if it has one).
- Look for community engagement. A token’s team might have a strong presence on Telegram, Discord or even Twitter where it interacts with folks. That can be a good sign that there is interest from developers, miners, stakers and other folks who have a long-term interest in the project.
- Look for longevity. While this isn’t the most important factor. A token that’s been around the block a few times has a better chance at surviving a long bear market than a new one does. Will Bitcoin go back up you, you ask. This point is a key reason we think it will. It’s done so time and time again. It’s been down before. And it’s bounced back every other time. Why would this time be any different?
- Do all the research above and then some. Any investment worth investing in is worth some extra time investigating. Look into the management team behind the project. (Although this obviously doesn’t apply to the mystery team behind Bitcoin.) Check to make sure a token’s liquidity pool is solvent.
Will Bitcoin Go Back Up: The Bottom Line
There’s ample reason to believe Bitcoin and the crypto markets in general will eventually bounce back. Whether that comes from the next Bitcoin halving in 2024 or the “Cramer Effect,” we’re not sure. But in the meantime, the down markets have given folks a whole lot more buying opportunities than they had a few months ago.
Will Bitcoin go back up? Almost assuredly. However, it’s likely to see a whole lot of volatility between now and when it climbs back up in value. So the key here is to only invest what you can ignore for the next couple years. Don’t dip into the rainy day fund to invest in crypto. It might rain. We highly recommend only investing what you could reasonably consider lost money.
Matthew Makowski is a senior research analyst and writer at Investment U. He has been studying and writing about the markets for 20 years. Equally comfortable identifying value stocks as he is discounts in the crypto markets, Matthew began mining Bitcoin in 2011 and has since honed his focus on the cryptocurrency markets as a whole. He is a graduate of Rutgers University and lives in Colorado with his dogs Dorito and Pretzel.
