cryptocurrency Bubble Would Eventually Pop
In a recent interview with Opinion columnist Noah Smith, Vitalik Buterin affirmed that he knew that the cryptocurrency bull market would eventually come to an end.
He added that he had begun to see people thinking that these high prices were the “new normal”. However, he personally knew that it wasn’t going to go this way for long.
He also noted that crypto bubbles typically last for up to nine months. Buterin mentioned that the previous surge was overextended, roughly lasting a year and a half.
All along, the Canadian programmer has dismissed the severity of the most recent price correction, chalking it up to cyclical dynamics. As per Buterin, low crypto prices are not indicative of any fundamental flaws within the cryptocurrency market.
The Terra crash, earlier this year, is an example of an unsustainable business model that only succeeded during the bull market and exploded later.
ETH has been struggling to recover ahead of the merge upgrade with its price down by 67.44% from its record peak.
Crypto’s Volatility May Decrease With Time
Buterin mentioned that in the medium-term future, cryptocurrencies will settle down and become approximately as volatile as gold or the stock market. At what level they shall settle down on- that’s the question to talk about.
The Canadian programmer believes that the probability that crypto will disappear or take over the world 20 years from now will be low if it manages to succeed in niche sectors such as stores of value and becomes the “Linux of finance.”
Ethereum Could Be Dropping To $1,000 Soon
As per Bloomberg, Ethereum, which touched $2,000 last month, could soon drop to $1,000 or less. The charts below indicate the same:
Bloomberg also cited technical indicators, which hint that ETH’s fall from the August high of $2,000 to the current $1,588 level may take it much lower. The fall may happen despite the much-expected Merge upgrade approaching.