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- Bitcoin is currently sitting in the volatility of the market, though it is hard to predict how investors will react to the recent events.
The aggressive dump can be a result of panic selling caused by the breakout from the $5600. Many interpreted this as “the bottom”. Since the price went below what many thought to be the bottom a panic selling would have triggered. The bitcoin’s lowest price in bear markets has been $5600.
Right now the price of bitcoin is around $4,600, but yesterday BTC stumbled down to $4,237. Over the past 24 hours, the price of Bitcoin fell from $4,900 to $4,280, by more than 12.5% for the first time in 2018. Ripple (XRP) markets have been doing better than most but had dipped to a low of $0.41 per XRP. The XRP token was down 6.6%, and over 13.4% over the last seven days. XRP is now back up to $0.46 per token according to the most recent data. Ethereum (ETH) now commands the third position among the top 10 cryptos market capitalizations and is down 35% for the week. Currently, ETH is trading for $144 per coin and holds $14.8 billion market valuation. Lastly, stellar (XLM) has been pushed back to the fifth position and is trading for $0.21 this Tuesday. Stellar markets are down 23% for the week but briefly managed to take the fourth position among the top 10 market caps.
Some media reported that the low trading volume of BTC in a period of an intense sell-off and free fall suggests a further decline to the low $4,000 region is likely, especially if the volume of BTC begins to increase in the days to come.
Is bitcoin going to hit new low price?
It is really possible the volume on Bitcoin could lead to a decline to a low range at $4,000. But what does it mean?
The sell-off continues in the crypto universe as the main cryptocurrencies set new minimums.
Economist Nouriel Roubini is known as “Dr. Doom” declares that the main central banks’ initiative to launch their blockchain based currencies will compromise the future of the current cryptocurrencies.
The argument is reasonable from the perspective of the current situation but he forgets to put all the elements on the balances.
Tomas Salles from fxstreet.com asked one very important question and gave the answer: ‘If someday the current financial system collapses in the face of unpayable debt, what security does it provide that the instrument is digital, reliable and decentralized? If that day arrives, I will prefer to get my paycheck in Bitcoins than in a currency that is worth less every day while the central banks raise rates in despair.’
Will bitcoin recover?
Bitcoin is currently sitting in the volatility of the market, though it is hard to predict how investors will react to the recent events.
Analysts have suggested that 2018 will be the year of cryptocurrencies. Wall Street hedge fund firm Fundstrat’s CEO Tom Lee has regularly predicted bitcoin to exceed expectations in 2018, with prices pushing past $25,000. Bitcoin’s famous volatility makes it impossible to predict, that’s the truth. And there are numerous factors that have an influence on the cryptocurrency market.
The values of Bitcoin, Ripple, and other cryptocurrencies have been crashing lately, but one analyst is predicting a huge rise ahead for Bitcoin with a forecast for it to reach as high as $100,000 in 2018.
Kay Van-Petersen, an analyst at Saxo Bank, said in December 2016 that bitcoin would reach $2,000 in 2017, a feat achieved in May. He now says bitcoin will be driven by a larger uptake of institutional investors and futures contracts.
That might seem unlikely. But the analyst predicting Bitcoin’s 2018 surge has been right before. Toward the end of 2016, the Danish firm Saxo Bank released its annual list of “Outrageous Predictions” for the year ahead. In it, the bank’s analysts said that Bitcoin could easily triple in value in 2017. That prediction came true by the spring of 2017. Bitcoin went on to increase from around $9,000 to $18,000 in the course of the year.
Why Bitcoin is swinging up and down?
In 2017, Bitcoin’s value soared from $1,000 to just under $20,000. And was dropping down to around $13,000 by the end of the year. Since then, it’s value has risen and dropped sporadically from day to day. And smaller cryptocurrencies like Ether and Ripple along with it too.
If you’re new to cryptocurrencies, this kind of volatility can be strange. But if you take a closer look it starts to make sense.
Individual owners have less power over the price of Bitcoin, and it creates stability since more people have a stake in the cryptocurrency. The other possibility is that government regulation could help stabilize Bitcoin. In the short term, that could cause its value to drop drastically as it happened in China and South Korea. But in the future, it could help calm down the speculation. Furthermore, regulation could dislodge the types of dark Bitcoin-related business that jeopardize the entire concept of cryptocurrencies.
Cryptocurrency price will rise despite fears of a collapse
Bitcoin has been the top-performing currency in the world in six of the past seven years.
Bitcoin’s price will rise again, after the digital currency and its rivals saw values plummet. Crypto investors suggest cryptocurrencies could surge. Bitcoin is now tested and proven to the market. People now understand the blockchain’s abilities from outside issues. Bitcoin is gaining more confidence from users. The upside for bitcoin is virtually limitless.
Or as someone twitted