The cryptocurrency market entered a definitive uptrend at 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 contributors’ 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, Ran NeuNer, host of Crypto Trader on CNBC Africa, tweeted that Bitcoin would never hit $5,000 again, asking the question of how much BTC one would buy if the coin’s price hit $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? http://t.co/s1CV3OjsQn
— Ran NeuNer (@cryptomanran) July 20, 2019
It’s safe to say that NeuNer could have been a little bit more subtle in his prognosis. Stating that Bitcoin isn’t going to go below a certain level could be a bit too much, given Bitcoin’s historic volatility. When BTC reached its all-time high in December 2017 of nearly $20,000, not many thought that the coin’s price would soon crash, with cryptos entering a bear market that lasted over a year.
But it did, and Bitcoin’s price declined to $3,200 in one year. While it would be great if BTC would “go to the moon”, giving predictions comes with a certain level of responsibility, and it must be owned up to.
It’s perhaps exactly for this reason that 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 term NeuNer’s statement investment advice, and it’s probably not what he intended it to be, it might have sounded like it to a lot of people, especially those who are new to the industry. His public position and considerable reach should prompt care and responsibility on his part.
In April 2018, CNBC’s Fast Money‘s Brian Kelly said that he would buy BTC at $20,000. Not long afterward, 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 so-called FOMO (fear of missing out). Of course, that’s true not only in the crypto market but 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 NeuNer’s.
Do Your Own Research
It’s completely understandable to keep the opinions of prominent and established influencers in mind when making investment decisions. However, it’s paramount to understand that they are exactly that – opinions, regardless of how bold and certain they might sound.
When investing in any type of asset, it is crucial to conduct your own research and to base your investments mainly on that, rather than listen to what anybody else has to say. It’s your money that’s on the line, not theirs.