Since some few days, cryptocurrency market is running under loss. As per the report in just one day, the price of bitcoin, a cryptocurrency has been dropped by around 9 percent. The value of bitcoin dropped around $9, 1000 to around $8,030. Last week, the valuation of the cryptocurrency hovered under $400 billion, now fallen to $336 billion.
Not only bitcoin but all the cryptocurrency’s value has also been declined. Those cryptocurrencies include Ethereum, Bitcoin, Bitcoin Cash, Ripple, Cardano, and Litecoin. As per the report, In recent days Ethereum is no facing daily loss of 10 percent. On the other side Bitcoin cash and Ripple’s value has been decreased by 9 percent.
Many analysts who have given their opinion on the decline rate of cryptocurrency to the ICO hearing and many representatives like Carolyn Maloney who was the representative for New York’s 12th congressional district stated that for now, cryptocurrency market is just like a bubble.
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The US representative informed about a report which was released by $81 billion Investment Company named Allianz. The company also state bitcoin has no stable value and can go down anytime. Stefan Hofrichter, firm’s global economics, and strategy stated “In our view, its intrinsic value must be zero.
A bitcoin is a claim on nobody in contrast to, for instance, sovereign bonds, equities or paper money – and it does not generate any income stream.” CNN reported the arguments which were brought up by experts in the finance industry have been refused and criticized by both cryptocurrency and technology experts.
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Some also said the media is the one reason behind the decrease in cryptocurrency value. Mt. Gox commented that past market performance and negative comments given by media had declined the value of the cryptocurrency market. Media is just showing the bad things about the cryptocurrency market.
Many innovative developments are going on within the cryptocurrency industry, and those developmental have not portrayed enough by the media. The cryptocurrencies are now adopted by many countries like Japan and South Korea. Last week, South Korea made its biggest internet accumulation named Kakao. Kakao regulates KakaoTalk, KakaoStory, KakaoTaxi, KakaoPay, and Dunamoo (UpBit).
Kakao had integrated cryptocurrencies and introduced the assets to around 12,000 merchants, 200 million KakaoTalk users and KakaoPay and KakaoTaxii users. Kakao invited Charles Hoskinson, Cardano creator and Ethereum co-founder to Kakao’s headquartering situated in Seoul. Even though many countries have adopted cryptocurrencies like bitcoin, Ethereum, Cardano, and Litecoin, and those coins have been witnessed many innovative developments the lack of momentum in the value of leading cryptocurrencies is decreasing the value of bitcoin.
Also Read : Future of Buy, Sell and Margin Crypto Trading
Recovery of cryptocurrencies
A few days ago, the price of bitcoin went down to the $7,000 region and dipped below $8,030. It is also expected that the value of bitcoin can fall further to $7000 in the short-term. However, many analysts have stated that the situation will change soon and the value of bitcoin will also recover during mid-term, mid of 2018. But, it is not sure that whether the price of most cryptocurrencies will increase or not.
Looking at the recent trend of bitcoin, one can say it is now a bit boring, and no one will interest to obtain bitcoin for now. After a long period of wild swings and fall, the crypto craze has now cooled down for some period. As per discussed above, some factors had affected the value of bitcoin and had stalled in between $8,500 and $11,300. This trend also has affected public interest too. Commenting on this trend, senior analyst at Digital Asset Research stated the general public now realizes that this is not a risk-free, get-rich-quick, investment opportunity and general interest has since diminished.
The fall of valuation of cryptocurrency depicts about how craze of investment can quickly go up and come down. Time was there when Bitcoin had dominated the cryptocurrency market, but now it is fading away. It is like the back section of financial papers which include the structure of the market, legal wrangling, and dry account regulatory scrutiny. If you look at the data given by Google Trends, you can see searches for Bitcoin has gone down to 82percent from December 2017. The BitInfoCharts shows on 7th December the coin peaked at 155,600 and now it is 63,000, a huge fall. Apart from that, Blockchain.info stated that the falling trend had affected the transition of Bitcoin and the total transaction has gone down by 60 percent starting from 13th December 2017. In December Bitcoin Craze Propels Coinbase App became the No.1 app in Apple’s Store. Recently, following some wrong reason Bitcoin has been in the top of the news.
As per the report, a few days ago Google announced that it would not allow ads of cryptocurrencies. Google announced that immediate after Facebook’s move. After that, the value of cryptocurrency has gone down. Some major banks like Bank of America and JPMorgan banned cryptocurrency purchase. Now, the Security and Exchange Commission is looking into the matter, and Congress will soon announce about how to deal with the digital currencies.
Stating about the current scenario of Bitcoin, President of Endpoint Technologies Associates, Roger Kay stated that the matter related with Bitcoin is straightforward. The coin went up first, and now it is coming down faster. Consumers of Bitcoin are now in trouble, and they don’t know what will happen in future. The current situation has proved that Bitcoin is the not safest way to get rich. Recently, billionaire Alan Howard has invested a huge amount in cryptocurrencies.
The database from Coinbase informed that, even though the craze for Bitcoin is now fading out still, it Bitcoin has around 20 million customers. Well, it is not clear how many of them are active now. Well, this is not first drop-of Bitcoin. Since 2010, Bitcoin has faced three declines where the value had gone down by more than 70 percent. But, Bitcoin did a comeback with a good vengeance and climbed to the top of the list. So, it is expected that, even though there is falling trend in Bitcoin, the trend can shift upward at any time.
Negative remarks from US Congress and SEC behind the crash of Bitcoin
It is now expected that negative feedback from the US Congress and SEC is the reason behind the downfall of cryptocurrency market and the market has witnessed 11 percent fall in just 24 hours. Brad Sherman, Representative of SEC stated cryptocurrencies are the best tools for terrorists and tax evasion. These kinds of negative comments have affected more and pushed down the value of cryptocurrencies which were already suffering from hiccups.
Even though Bitcoin has been going down rapidly, some predict that there is a long-term upward trend of Bitcoin. It has a hard resistance at $11,400, but in future, the resistance value can be broken. Well, still there is some horizontal movement between the support and resistance. But, some news can change the movement.
This is the time where you should move with leverage and should set a stop-loss at around $7,800. You can now book your profit amount in between $11,000 to $11, 4000. For now, the investors will have to wait for more time to see the rising trend of cryptocurrencies. There is no doubt that this market includes a lot of risks. It can change anytime and any moment.
Bitcoin’s popularity is fading: for now, or for good?
This the most important question for now. As per some well-known analysts, the value of Bitcoin will go up in future. James Altucher, the former hedge fund manager, has predicted that Value of bitcoin will go up by $1 million in coming three years. Apart from that, MGT Capital Investment CEO and outspoken libertarian John McAfee also tweeted that Bitcoin will arrive around $1million by the end of the year 2020.
In an interview conducted in 2017, Altucher stated “There are 15 million millionaires around the world. All their financial advisors are going to say, ‘Hey, buy a bitcoin. You need some exposure.” During that time Bitcoin was trading near around $10,811. Well, anyone can predict a value of Bitcoin. You can predict $100,000,000 or a billion. For those who got $1,000 with $10,000 purchase will have $10,000,000.
Those who got $100 will have $100 million later. A point will come where the investors will want to go completely cash out. The cashout amount may be $1 million, $10 million or at $100,000. Maybe the cash out process is happening now. For those who have paid more than $12,000, they are now praying hard to get out from this situation.
Those investors who are getting in at $6000 and holding, they had managed to get a 300 percent gain. They are now on their way toward break even for the second time. The question is that whether they will hold at $6,000, $5,000 or $4,000. Maybe a time will come when the holders will panic, but there is not the particular date when it will happen. It will produce a massacre.