The crypto industry has been dealt its fair share of blows in recent days. After Elon Musk called attention to Bitcoin’s (CCC:BTC-USD) energy consumption, the entire market went downhill. Now, as cryptocurrencies big and small stumble to regain their footing, investors have one key question. Will crypto recover from this?
Bitcoin, the industry’s barometer, is feeling the heat, and it’s not from the cooling fans on BTC mining machines.
The energy consumption to mine the industry leader’s coins is equal to that of a small nation. Musk realized this last week, leading him to turn his back on the play. The huge news catalyzed an industry-wide correction that, while damaging most every crypto on the market, cost Bitcoin a third of its value.
Bitcoin prices have yet to recover from the correction, sitting $20,000 beneath their all-time high.
Will Crypto Recover? Bitcoin Bears and Bulls Collide
Investors and analysts alike are clashing over the crashing. Can Bitcoin recover from its losses? If Bitcoin is the figurehead of the entire industry, its future could forecast that of the entire world of digital currency.
Adam Button of Forex Live is bearish on Bitcoin, but not necessarily on crypto. Button has made clear his view that Bitcoin is “not the currency of the future, and it’s time everyone stopped pretending that.” He makes his case that in tech, being the first to do something doesn’t give you a stranglehold on an industry. He believes that crypto will recover, and whoever has the best model will overtake Bitcoin in due time.
Traders of Crypto founder Antony Portno is another analyst bearish on Bitcoin. He says that it’s unclear how Bitcoin will recover, since Musk’s rejection of Bitcoin is just the first sign of “crypto-influencers turning [their] back on the currency.” Kevin Brown of Scottish Friendly calls crypto investing a “zero sum game,” and says that investors must be prepared to lose all of their money because of the wild volatility.
This is not to say that everybody is turning their backs on crypto, however. There are many Bitcoin and crypto bulls, like Chris Harper of Birmingham Mail. Harper cites April’s correction before soaring to an all-time high as evidence enough that Bitcoin can recover again. Not to mention, green cryptos are on the rise, and sentiment that crypto is the future of currency is still high.
Anthony Cuthbertson of The Independent writes that investors should zoom out to the big picture. Bitcoin is down now, but it is monolithic in comparison to 10 years ago. Year over year, the coin is still up almost 400%. He says the current losses are but a small growing pain in an industry that is just hitting its growth spurt.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.