The last two weeks for Bitcoin was tough. Bitcoin dropped after the Bitcoin Cash hard fork. It was FUD in the market that may have caused this. And Bitcoin wasn’t alone. Ethereum and Ripple were also affected. Unfortunately, it didn’t stop there. Yesterday, Bitcoin dropped momentarily to below $5,000. But recently, it fell another 7% and dropped to $4,387. It already lost around 30% just in the last week.
It was an unprecedented fall for the biggest cryptocurrency. In fact, for months, Bitcoin was trading at around $6,200 to $6,500 experiencing low volatility a lot of people thought that Bitcoin may have already bottomed. Mike Novogratz was one of these crypto experts who thought that this was the case. There were those who believed that investors are holding on to their Bitcoin waiting for the next bull run.
But given the recent events, Bitcoin continues to plunge. According to Neil Wilson who is the chief market analyst at Markets.com, “The crypto bloodbath continues”. He added that “Things look like they only get worse from here. Where is the incentive to buy? It does rather look like the bottom is coming out of this market”.
After Bitcoin dropped to $5,000 range, it was reported that whales too advantage of the situation to buy Bitcoin. Now, could it be that this should be the next move for investors as well? Or perhaps, many are waiting for the price to come back?
Different Factors
Many believe that there are several factors at play why the crypto market is bearish recently. Some point towards the direction of the recent stocks sell-off. Some also believe that this is something is just a short-term event and Bitcoin will be able to recover.
On Friday, the US Securities and Exchange Commission clamped down on two startups that raised their funds via initial coin offerings. Airfox and Paragon were penalized for selling unregistered securities. The crypto exchanges offering unregistered securities may also face trouble from the agency.
Is Bitcoin a Fraud?
There are several personalities who believe that Bitcoin will eventually fall. You have Nouriel Roubini who called crypto a “stinking cesspool”. Last month, he said that crypto is “the mother or father of all scams and bubbles”. He is the same person who predicted the 2008 financial crisis.
But he isn’t exactly alone. You also have central bankers and JP Morgan boss Jamie Dimon who mentioned in 2017 that Bitcoin was a fraud. He warned that it could eventually blow.
Of course, there is always the glimmer of hope in the eyes of the crypto market. There is interest on the part of institutional investors. For instance, Fidelity wants to make it accessible for institutional investors to participate in the market. You also have the possibility that the US Securities and Exchange Commission is going to approve a Bitcoin ETF. The agency rejected a number of applications including that of the Winklevoss twins citing the possibility of price manipulation at play. Is Bitcoin still going to go down in the coming days or is this the bottom for the cryptocurrency already?
