In the past one week, the cryptocurrency market has witnessed a huge loss, hitting the lowest bitcoin value of $4,050 USD. Although at the time of writing the bitcoin price was ranging in $4,575 the further decrease in price can be expected.
Cause for the Bitcoin Fallout
Roughly speaking there has been more than $12 billion loss to overall cryptocurrency landscape, but what might be the probable cause to price volatility? Per few market analysts, the major reasons for this fallout might be one or perhaps all of the below-listed aspects.
Firstly, the SEC’s announcement on Friday that the operators of two “Initial Coin Offerings” (ICOs) broke the law by selling unlicensed securities, and must pay fines and restitution. This might have affected the regulatory space and consequently affected the crypto market.
Secondly, the most important aspect to consider might be due to the recent Bitcoin Cash Fork which resulted in two different currency formation. Of course, this fork had its own community and other issues. This might have transcended in a bad manner to the entire ecosystem causing the price decline
Lastly, the decline in sales value for famed Nvidia chipmaker. The decline might have spooked the crypto investors in to think twice before investing being under the assumption that – no sales means lowered crypto demand.
Whether or not, the aforementioned reasons to be individual or combined cause for the bitcoin plummeting, many countries and institutions across the world are embracing the underlying technology – blockchain.
Interestingly enough, amidst lowered bitcoin price, the Fundstrat co-founder Tom Lee stands by his reduced year-end bitcoin price target of $15,000 calling it as an – ‘awkward transition’.
According to Peter Brandt, notable technical analyst, and trader, even if the BTC falls down to as low as $4000 which is 80 percent lesser than its all-time high value, – ‘this would be only the fifth biggest correction in the history of the cryptocurrency market.’
There exists a possibility for BTC to test the $4,000 support level in the weeks to come, but a further drop below $4,000 can only occur if the sell volume of the asset intensifies to a point in which the volume of the asset hits $8 to $9 billion.
What are your thoughts on the ongoing crypto market condition? Let us know your thoughts in the comment section below.