The cryptocurrency market entered a definitive uptrend since the beginning of 2019 and, naturally, Bitcoin has become a hot topic again. Mainstream media outlets like CNBC, Reuters, and Forbes have been covering the topic extensively.
However, their statements are oftentimes questionable and could potentially lead traders, especially inexperienced ones, to make bad calls.
‘Bitcoin Will Never Go Below $5,000 Again’
Two days ago, CNBC Africa’s Crypto Trader host Ran Neuner tweeted that Bitcoin will never hit $5,000 again, asking the question that how much BTC will people buy after the coin hits $8,000.
Bitcoin will never go to $100 again. It’s will never see $1000 again, never see $3000 and never see $5000 again. I think the right question is , if Bitcoin goes to $ 8000 again, how much will you buy? https://t.co/s1CV3OjsQn
— Ran NeuNer (@cryptomanran) July 20, 2019
It’s safe to say that Nauner could have been a little bit more subtle with how definitive his prognosis is. Stating that Bitcoin isn’t going to go below a certain level could be a bit too much, given the historic hyper volatility of Bitcoin. When BTC reached its all-time high in December 2017 at nearly $20,000, not many had thought that the coin’s price would crash soon with cryptos entering a bear market that lasted over a year.
But it did, and Bitcoin’s price has declined to $3,200 in one year. While it would be great if BTC could “go to the moon”, giving predictions comes with a certain level of responsibility and it has to be owned up.
It’s perhaps exactly because of these reasons people are rather skeptical of his statements.
You also said $50k end of 2018. Clueless!
— Drol (@Drol56530072) July 20, 2019
Bold Statements Are Dangerous
Even though it’s hard to call what Neuner did a piece of investment advice, and it’s probably not the way he intended it to be, it might sound like this to a lot of people, especially those who are new to the industry. After all, his position and the overall reach that he has should prompt care and responsibility.
In April 2018, CNBC Fast Money’s Brian Kelly said that he would buy BTC at $20,000. Needless to say, not so long after that the price tumbled as Bitcoin lost upwards of 85% of its value.
Unfortunately, it’s somewhat common for inexperienced investors and newcomers to purchase cryptocurrencies at their peak, mainly because of the so-called FOMO (Fear Of Missing Out). Of course, that’s true not only for the crypto market but for every other one as well. Hence, it’s important for people with serious influence over their viewership to proceed with increased caution when giving predictions or making bold statements like the ones Neuner did.
Make Your Own Research
It’s completely understandable to keep the opinion of prominent and established influencers in mind when making your investment decisions. However, it’s paramount to understand that it’s exactly this – an opinion, regardless of how bold and certain it might sound.
When investing in any type of asset, it is crucial to conduct your own research and to base your investment mainly on that, rather than listening to what anybody else has to say. It’s your money that’s on the line, not theirs.