Bitcoin
Is Bitcoin Spiraling Down to a New Bottom?
Bitcoin (BTC) appears to be in yet another free fall, with no indication when or where it will stop, and investors are wondering if the coin is going to breach its recently identified bottom once again.
Bitcoin behavior in 2018
Bitcoin has had an eventful 2018, with countless ups and downs in the last 12 months. As many are aware of at this point, the BTC started this year with an all-time high, when it reached $20,000 per coin. The situation quickly took a turn for the worse, and in mid-January 2018, the market crashed. As a result, BTC started losing value, and over the following months, it lost over 30%.
The free fall stopped at around $6,300, which is where the coin managed to stabilize for several months. At this point, it often had small surges which provided investors with hope that the coin has reached a bottom. Many believed that it will stop dropping and that it can only go up from this price. Then, in November 2018, the market crashed yet again, and BTC breached its bottom.
It continued its downward spiral until it reached $3,200, which experts identified as the new bottom. Once again, investors were hoping that this will be the end of Bitcoin’s value loss and that the market will switch from bearish to bullish. That also seemingly happened on December 17th, and for an entire week, Bitcoin was growing once again, until the surge increased its value by around $1,000.
As many predicted, this was still not the end, and the coin is now rapidly losing value for the third time this year. At the time of writing, the BTC value is at $3,661.49, after experiencing a drop of 3.5% in the last 24 hours.
What will happen next?
It is unclear where the coin will go from here, and while investors are hoping that its bottom might still lie at around $3,200, some analysts are leaving open the possibility that this bottom is not the real one, and that BTC will soon breach it.
It appears that Bitcoin’s downward spiral once again affected the entire market, and almost all cryptos within the top 100 are currently trading in the red. The situation is pretty much the same when it comes to the ten largest coins by market cap, with only Tether (USDT) experiencing slight gains. Bitcoin’s market cap ($63.88 billion) currently still dominates the crypto space, with the coin owning more than half of the total market cap ($120.5 billion).
Since the second market crash occurred, the crypto community searched for Bitcoin price predictions in their attempts to understand what is going on, and what might be the best course of action. Some analysts proposed that Bitcoin’s value has yet to reach its real bottom and that it is likely that the coin will drop below $3,000.
In the meanwhile, it appears that bears have returned to the market for one last time in 2018. With only a few days of this year remaining, this will likely be the last drop that Bitcoin is experiencing. The community is expecting that 2019 will be the year when the situation will turn around, with crypto thriving in prosperous conditions once again. While this is not impossible, many experts believe it is unlikely that it will occur on January 1st.
It will take a lot of change for the market to break free from the bearish grip, and large projects such as the Bakkt exchange launch might start this process. Of course, no one can predict the future, and analysts can only rely on behavioral patterns through which Bitcoin has gone through so far. Even so, there is a lot of potential in 2019, and it is entirely possible that the new era of crypto prosperity might start at some point.
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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.
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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%.
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Fundamentals
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