Bitcoin Recovery – The Path Back to All Time Highs

 Bitcoin remains one of the most volatile investments on the market, yet it is still one of the most popular crypto currencies in the world. For many investors, the all-time highs of Bitcoin seen in 2017 is the Everest they must climb to for a full recovery. Knowing what went wrong and having a plan to recover are the first steps in moving out of the doldrums toward the revered 2017 highs.

The 2017 bull run was mainly driven by an influx of new users who saw the potential for profits in Bitcoin. These users were mainly retail traders that had no long-term commitment to the crypto currency. Some believe the market was flooded with new money, causing the Bitcoin price to peak. As more investors reaped profits from the surge, the core of these investors began to sell off, pushing the price of Bitcoin down.

The crash led to a sense of panic within the market and much of the enthusiasm was lost. Even today, the fear of another bear market persists, creating great volatility. However, in spite of the bear market, there is still some belief that the Bitcoin recovery is achievable.

Today, the Bitcoin recovery plan must focus on more than just bulls and bears, and should include technological advances and improvements in the infrastructure. The SegWit2x and Lightning Network initiatives both aim to improve the scalability and speed of Bitcoin transactions. By making it easier and faster for people to transact in the crypto currency, adoption should increase, as the processing fees become smaller and more efficient.

In addition to technological improvements, a healthy portion of the Bitcoin recovery plan should also include the emergence of new stable coins like Tether and USDC. Stable coins are intended to be, well, “stable”, with the U.S. dollar being a reliable foundation and a “pegged” asset. This helps to create a “safe-haven” which acts as an alternative to Bitcoin and other crypto currencies hire a hacker online.

Furthermore, there is a need for greater regulatory clarity by government bodies in an effort to make Bitcoin more accepted and less subject to manipulation. Regulators also need to provide guidance to organizations wanting or already operating businesses in the cryptocurrency sphere. The introduction of regulation will also contribute to a trusted system of business operations.

Finally, in order for Bitcoin and other crypto currencies to recover, there needs to be a concerted effort to build and encourage institutional investors. Currently, many institutional investors are still staying on the sidelines, citing the lack of regulatory oversight. Without this modern infrastructure in place, many institutional investors who could contribute to a successful Bitcoin recovery are unlikely to enter the space.

Ultimately, a Bitcoin recovery will involve a combination of strategies, both on the technical and regulatory side. With the right plan and determination, it is possible that Bitcoin can once again reach its 2017 highs and beyond. It will take team work with governments, institutions, startups, and individuals alike to reach a full Bitcoin recovery.