The beginning of 2018 does not turn out to be the most beneficial in the community’s perception of cryptocurrency. Bitcoin has dropped by 70% in value from an ATH of over $20,000 in December 2017. We thought we were coming out of it, but People who bought their crypto assets at ATH were not aware that the general sale had just begun.
Many claim this may be the end of Bitcoin. But the end has been upon us many times. 99bitcoins estimates that Bitcoin has been proclaimed dead about two-hundred-fifty times since 2010 (the most murderous year was 2017, with as many as one-hundred- nine obituaries). CCN has also prepared a brief summary of the largest corrections to biggest cryptocurrency.
Looking at the corrections in Bitcoin’s history, it’s apparent that the biggest such revisions occurred in 2013. The drops lasted over a year — the value of Bitcoin decreased by as much as 87%. Can we expect further drops?
One of the major adjustments in 2017 happened in September. At that time, China announced an ICO ban, and also introduced strict regulations that would not allow free cryptocurrency trading. Jamie Dimon, CEO of JP Morgan Bank, also added his voice to the discussion about Bitcoin. The collection of so much bad information in a short period of time caused a 14-day price drop of 40% at the lowest point.
Cause of the bloodshed
The current state of affairs is primarily the responsibility of worrying news from the world – in particular from China. In addition, the controversies surrounding Bitfinex and Tether create uncertainty among American investors.
A major surprise was the FUD spreading regarding India’s stance on cryptocurrency. Panic among Indians caused drops on one of the stock exchanges up to $4,000.
Nor did they spoil the information from South Korea – the biggest player in the cryptocurrency market. The government’s policy is aimed at achieving the de-anonymization of trade in cryptocurrency, which triggers mixed reactions among investors, especially those respecting their privacy.
All of these reasons have had their share of current declines similarly. An additional aspect is an average situation on all world stock exchanges. Many companies have lost a lot of value.
We have no choice but to wait calmly for further developments. The crypto market needs new capital in order to emerge from this spectacular hole. So far…. we wait.