Can Bitcoin Grow Without Repeating Past Mistakes? Tone Vays encourages a slow and steady approach for future price stability

In a recent video, well-known cryptocurrency analyst and trader Tone Vays expressed his preference for a slower and smoother growth path for Bitcoin BTC/USD, the largest cryptocurrency by market capitalization. He cited the parabolic rally of 2019, in which BTC experienced a 200% rise in just four months followed by a year-long stagnation and a sudden 70% price crash, as an example of why rapid increases can be detrimental to cryptocurrency stability.

Vays believes that if Bitcoin were to break the $35,000 resistance level on its first attempt, it could lead to similar negative consequences, as the crypto may not have had enough time to build a stronger base capable of resisting selling. However, if BTC breaks this level in the coming months, Vays predicts a potential rally to somewhere between $50,000 and $60,000.

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The recent regional banking crisis has seen people flock to crypto and blockchain-based assets as a means of securing liquidity for their businesses and as investments. For example, Gamestop Corp. saw a recent increase in volume on the platform, with some asset volumes growing over 20,000%. In the startups market, retail investors have invested over $900,000 in Gameflip for their digital asset and NFT marketplace.

Vays is a former Wall Street trader who emerged as a leading figure in the cryptocurrency world. With almost a decade of experience as a risk analyst at Bear Stearns Cos. Inc. and later as vice president of JPMorgan Chase & Co. after the 2008 crisis, Vays entered the cryptocurrency world in 2013, focusing mainly on Bitcoin and studying the asset from both an economic and technological perspective.

Events in 2019: Bitcoin experienced a rollercoaster of events in 2019 that affected its price and raised questions about its use and regulation.

• In early October, Russia’s passage of a new digital rights law that defined smart contracts and cryptocurrency tokens was seen as a potential step toward regulating the space, despite the country’s reluctance to fully embrace cryptocurrency.

• Cumulative Bitcoin transaction fees passed the $1 billion milestone in mid-October.

• Bitcoin’s connection to the dark web made headlines after German police raided a data processing center that allegedly hosted websites dealing in drugs and images of child abuse. Meanwhile, Ohio, the first US state to accept Bitcoin for taxes, suspended its cryptocurrency payment system.

• A South Korean man has been charged with running the world’s largest child sexual exploitation market, with transactions worth over $730,000 in Bitcoin.

• Johannesburg, South Africa, was targeted by Bitcoin-hungry hackers, who demanded payment of more than $30,000 worth of the cryptocurrency.

The impact of the pandemic: Then came COVID. At the outbreak of the pandemic in early 2020, the global economic downturn resulted in a decline in the value of traditional assets such as stock markets. This created an increase in demand for Bitcoin as a safe haven, and significantly increased its price in the first months of the pandemic. By mid-May 2021, the price of Bitcoin had reached a peak as a result of this increased demand.

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Unexplored Area: Cryptocurrency is becoming increasingly attractive to investors as traditional banking institutions struggle to remain viable in the wake of two major collapses. Since then, digital currencies such as Bitcoin and Ethereum have seen a rapid rise in their values ​​as investors seek safe havens for their assets. This growth has been further fueled by speculation that cryptocurrencies could represent a fundamental shift away from traditional banking methods, giving users greater control and transparency over the management of their finances.

But does the current Bitcoin resurgence indicate that the cryptocurrency hit rock bottom and it’s only up from here? Or is it simply a temporary bounce before another decline?

The recent rise in prices has been a welcome relief, but with global politics, rising inflation and the Federal Reserve’s interest rate policy in flux, this is uncharted territory. Those with experience in the market understand that predicting the short-term value of digital assets is a difficult task, but in this highly volatile market the challenge is even greater.

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