Bitcoin hits low point for the year and markets fear further drops
After drops over the weekend, markets rallied slightly today but many predict the world’s most popular crypto-currency will soon sit below $5,000
Yesterday saw crypto-currency markets fall to their lowest levels for the year. Almost six months of bearish selling pressure has resulted in nearly 72% losses across the entire digital currency market. Bitcoin, the world’s most popular crypto currency, fell to its lowest level since it began its meteoric rise at the end of October last year.
Markets today have recovered slightly from their dip to US$235 billion on June 24th. Bitcoin plummeted to US$5,825, its lowest price since late October, according to analytics website coinmarketcap.com. Since hitting an all-time high of nearly US$20,000 in mid-December, Bitcoin has shed 70% of its value.
While many bankers, billionaires and Wall Street institutions have concluded that Bitcoin’s bubble has burst, optimists note that Bitcoin is still up 137% from its price of around $2,600 this time last year. They argue that, after its parabolic spike late last year, this is simply the market’s way of finding more realistic price ranges as it weeds out speculators with little or no trading experience.
Since yesterday’s dip crypto markets have rebounded by almost 7% recovering $16 billion to trade at around $251 billion by total capitalization. The long term trend however is still bearish and more losses could be on the cards with many now predicting a further fall to $5,000 for Bitcoin.
The second most popular crypto-currency, Ethereum, also suffered heavy losses and fell back to $425 during the dip. It is currently trading at $452 which is back to November 2017 levels. A bigger dip occurred for Ethereum when it fell to $365 on April 1st, wiping out almost a year’s worth of gains from highs of over $1,400 in early January.
All other alternative coins, or altcoins, have fallen heavily over the past week with many yesterday reaching their lowest level of the year. This morning shows a slightly brighter outlook for the markets as they have begun to recover with some coins such as privacy-focused Monero posting a 14% gain on the day.
With already three major dips in the market so far this year, each lower than the previous one, traders and investors are now wondering if we have hit the bottom, or if there may still be further drops to come.
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