Bitcoin
Bitcoin is crashing but Analysts Predict a Rebound; here is why
One look at the Bitcoin price graph on CoinMarketCap and you will see just how fast its price has been falling in the past few hours. As it seems, the series of bad news that has been circulating, including the Bithumb attack, not to mention the six exchanges in Japan that got slapped with government regulation have finally caught up to BTC.
Market bloodbath
Today the market woke up to a bloodbath as Bitcoin led the dip with its price dropping by over 3.57 percent in the last 24 hours. Currently trading at $6,160 as of this writing, Bitcoin has recorded its lowest price since the beginning of the year when it peaked at about $17,135.
Bitcoin is not the only one; Ethereum has also declined by about 40 percent in 2018 to its current price of $474. Apart from the attack on Bithumb last week, regulatory authorities have increased scrutiny efforts in the industry ever since the attack on Coincheck that saw the crypto exchange lose about $500 million.
What do analysts have to say?
However, even with all the bad news in the crypto space, Todd Gordon (the founder of TradingAnalysis.com) believes that Bitcoin will change hands above $10,000 by next year. Gordon is an expert market analyst with experience in commodities like crude oil as well. Here is why his predictions matter.
In 2015 November he predicted that crude oil would trade at 50 percent lower from its $41 mark at the time. In February 2016, crude was trading at $26.05, roughly half the value as predicted the previous year. Now, Gordon predicts that BTC’s price will drop further down from its current price mark of $6,100 all the way down to the $4,000 mark after which it will subsequently hit the $10,000 mark at the end of 2018.
Bitcoin taking on a bull run
The main reason for Gordon’s prediction is market volatility. He further explained that the recent correction for Bitcoin from its peak of $19,000 back in January is “inconsequential” since Bitcoin has improved significantly since 2015. He believes that the “beautiful uptrend” for Bitcoin is just getting started.
Compared to previous times, Gordon believes that Bitcoin’s current average lows of 17 percent are a far cry from previous times when the coin would fall by 20, 30 or even 40 percent in a week. Supporting his predictions, Wall Street analyst, Spencer Bogart, also mentioned last month that the major cryptocurrencies are most likely to “trade at least above $10,000 by the end of the year”
According to Spencer Bogart, “The long-term thesis is very much intact… The institutionalization of Bitcoin is absolutely occurring…Every major bank is trying to do something in the space. Either they’re going to be offering Bitcoin to their clients, they’re working on a custody platform or they’re opening up a trading desk.”
With the current market behavior, it’s easy to look at these predictions as unrealistic. However, Bitcoin has always had a way of pulling a surprise. The bear market could last longer or end at any moment considering the technicality of the crypto market. As a result, those who reckon on the market sentiments and technical are able to recover losses while trading crypto.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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Bitcoin price dumped hard on Monday, briefly slipping below $41,000, erasing gains recorded in the previous week. The premier cryptocurrency seems to have exhausted its recent rally propelled by industry vulnerabilities. At the time of writing, the world’s largest cryptocurrency was trading slightly lower at $41,385. Bitcoin’s total market cap has dipped by 2% over the past day, while the total volume of BTC tokens traded over the same period climbed by 58%.
Fundamentals
Bitcoin price has been facing retracements and a rollercoaster over the past few days after recently rocketing to a 20-month peak. On-chain data has suggested that many investors used the opportunity to take some profits, leading to a decline in the asset’s price.
Bitcoin’s price slump is mirrored in the wider crypto market, with the global crypto market cap decreasing by 1.85% over the past 24 hours to $1.55 trillion. The total crypto market volume has increased by 32% over the same period. The Crypto Fear and Greed Index has plunged from a level of extreme greed to a greed level of 70, suggesting a decline in risk appetite.
Ethereum, the largest altcoin by market capitalization, is currently trading at $2,167, down almost 3% for the day. Meme coins have been hit hard by the market slump, with Dogecoin and Shiba Inu down by more than 4% over the last day.
Last week on Thursday, cryptocurrency experts took notice of…
Bitcoin price edged lower on Thursday despite optimism in wider markets on the back of the Fed’s interest rate decision. The flagship cryptocurrency has been consolidating above the critical level of $42,000 after briefly topping $44,000, its highest level in 20 months. Bitcoin was trading 0.71% lower at $42,569 at press time. BTC’s total market cap has increased by more than 3% over the last day to $832 billion, while the total volume of the asset traded over the same period jumped by 22%.
Economic Outlook
Bitcoin price has been trading sideways over the past few days, suggesting a pause in its recent rally towards $45,000. The premier cryptocurrency has decreased by 4% in the past week but remains 15.22% higher in the month to date. The digital asset has staged a significant recovery this year after a torrid 2022 in which a string of scandals, including the collapse of FTX, led to a market meltdown, undermining the credibility of the sector.
The crypto market has been buoyed by the Fed’s latest interest rate decision. The US Federal Reserve on Wednesday held its key interest rate unchanged for the third consecutive time, in line with market expectations. With the easing of the inflation rate, members of the Federal Open Market Committee (FOMC) voted to keep the benchmark overnight borrowing rate in a targeted range between 5.25%-5.5%.
Additionally, the central bank indicated that three rate…
Bitcoin price has been hovering above the $43,000 psychological level over the past two days amid anticipation about the potential approval of a spot bitcoin ETF. The flagship cryptocurrency has climbed more than 16% in the past week and nearly 170% in the year to date. Bitcoin’s total market cap has increased by nearly 5% over the past 24 hours to $858.9 billion, while the total volume of the token traded rose by 43%. The Bitcoin price was trading at $43,914 at press time.
Fundamentals
Bitcoin price has posted significant gains over the past few days, climbing to its highest level since April 2022, before the crash of a stablecoin that started a litany of company failures, pummeling crypto prices. The world’s largest cryptocurrency briefly topped the crucial level of $44,000 on Wednesday amid rising momentum despite being massively overbought.
According to analysts, with no spot bitcoin ETF approvals yet and the halving event five to six months away, the market is riding on FOMO. Capital has been flowing in the Bitcoin market amid enthusiasm that the launches of spot ETF will bring in billions of dollars of new investment into the crypto sector.
Investors have already started providing capital as seed money for ETF products. Notably, a recent report by CoinDesk showed that the world’s largest fund manager, BlackRock, received $100,000 in capital from a seed investor for its spot bitcoin exchange-traded fund…
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