Bitcoin has recently seen a dip in its value of such a magnitude that has not been seen since the hack of Mt. Gox, but one Bitpay official believes it can recover.
The cryptocurrency that had been on a bullish run the past few months has dropped by half the value as compared to last month, where it had been trading at more than $19,000 for a few days; whereas, it recorded a value of $9,000 only a day ago.
This downward journey of Bitcoin has caused most people related to the cryptocurrency industry to be agitated, but some people from the community still believe in Bitcoin’s power to bounce back and resume its pace of improvement once more.
Once such name is Sonny Singh, the chief commercial officer at BitPay.
Singh believes that the current panic is an overreaction
Speaking to Bloomberg, Singh stated that the cryptocurrency world is prone to see overreaction from everyone whenever there is any significant movement in the market, regardless of whether it is positive or not.
“Every time there’s good news or bad news, the market tends to overreact.” Singh said while speaking to Bloomberg. “And now we are seeing an overreaction of the downward side.”
He further mentioned the recent news about South Korean officials discussing a ban on cryptocurrencies, but was quick to point out that these authorities, including China, might not want to stop cryptocurrency trading altogether and instead only regulate it. He explained that it would be good for the industry.
“So there’s talks about Asian regulators trying to ban some crypto exchanges in [South] Korea, China’s already been stopped for Bitcoin trading for a while, and now [South] Korea’s in focus,” Singh said. “But again, I think the regulators don’t want to ban it. They just want to regulate it more and make sure it’s all being done in a legal way which is actually good for the industry.”
In response to a question about BitPay’s performance in the past month, Singh explained that they have not noticed any drop in volume for their business as compared to December 2016, which was the best month for their company.
Sharing his point of view on Bitcoin’s future, Singh explained that this was the first time in a year that the value has seen a drop of such magnitude. He agreed that the recent decline is noticeable but responded by elaborating on how “next week it might be back up again.”
He was not one to shy away from Bitcoin’s volatile behavior and presented that to back his claim. “Bitcoin predominantly goes up and down, it’s quite volatile, right?” He said.
He also mentioned that while this would be the first instance of such a nature for new buyers, for veterans of Bitcoin trading, this is quite normal to witness.
Cory Johnson from Bloomberg also pointed out how this value is around the same figure from just a month ago where everyone was saying that Bitcoin is in a good place. He stated that it is still the same Bitcoin with the same value as of last month.