The well-known founder and first operator of the online black market “Silk Road”, which existed between 2011 and 2013, speaks of the fact that the Bitcoin price will move down in the short term. It could therefore be a parallel that is compared to the long cycle of previous years. During this cycle, the best-known cryptocurrency went through several waves of volatility and had big ups and downs. Ultimately, in his opinion, Bitcoin will recover and reach even higher levels than before.
The long-term cycle and the impact on value
If you look at past market data up to 2011, Ross Ulbricht claims that Bitcoin actually only went through two important cycles. The first cycle ran from 2011 to 2017 and went through various waves, which ended when Bitcoin reached its all-time high of just under $ 20,000. According to his statements, Bitcoin is now in the second cycle, which corresponds to 2014, during which time Bitcoin fell very sharply and declined over a period of two years.Because of this, Ulbricht claims that the downward trend that Bitcoin is currently in could continue until next year. The price could reach a very low level and maybe even drop below the $ 3,000 mark before heading up again. During this phase, enormous fear can and will arise again among investors and Bitcoin enthusiasts. However, this phase will again represent an optimal buying opportunity, comparable to the time from past lows.He is therefore very optimistic about the long-term future of Bitcoin, the rebound after the end of the downward phase will lead to new highs, according to Ulbricht. As in all down phases, it will take a lot of courage and patience, but the third cycle rewards will be worth it.