Itâ€™s Friday, October 18, 2019, and once again, everybodyâ€™s favorite cryptocurrency has fallen into the $7,000 range. Yesterday, we reported that bitcoin was potentially back above $8,000 and likely to experience greater swells from here, but it appears thereâ€™s still cause for concern.
Bitcoin Again Heading for Lows
Bitcoin has been moving up and down for roughly one month. The late September bloodbath that ultimately caused the currency to lose about $1,400 in just a matter of minutes seems to have had a long-term effect on the currency, as it has yet to show any serious signs of recuperation.
How can a coin that was trading in the $13,000 range just a few months ago have lost so much of its value so quickly? This is a question thatâ€™s likely on every crypto enthusiastsâ€™ mind, and it seems that thereâ€™s an even bigger cause for concern. Could we potentially see bitcoin repeat its actions of November 2018? Will the currency stay where it is or worse - fall even lower - in the coming months and take an exorbitantly long period to fix itself?
As we all remember, the currency lost more than 70 percent of its value in November of last year. Following a bitcoin cash hard fork that ultimately gave birth to the controversial new coin bitcoin SV, the currency saw itself hanging around the mid-$3,000 range after it had spent all summer standing at $6,000. It took roughly five months (until April of 2019) for the currency to recuperate, and even then, it only rose back up to $5,000. Nearly two years have passed since bitcoin hit its all-time high of nearly $20,000, and it has yet to earn back a significant portion of these losses.
As it would seem, the entire crypto market is suffering during todayâ€™s early morning hours. Ethereum, for example, has lost all its gains over the past 24 hours and is now trading for about $172. Litecoin is down to $53, and bitcoin cash is trading for $213 - the worst itâ€™s been in weeks.
Mati Greenspan - senior analyst at e-Toro - claims:
Across all crypto venues, volumes are dismal. This is a giant lull in crypto volumes across the board.
Things Arenâ€™t That Bad?
However, Greenspan doesnâ€™t appear convinced that bitcoin is necessarily suffering per se, nor does he seem to believe that BTC is done for. As it stands, he describes bitcoin as being in a “sleeping position,” and weâ€™re likely to see this change in the coming months. He comments:
Letâ€™s not forget that bitcoin is one of the best performing assets this year. After all this action, a period of stabilization is more than welcome. Bitcoin is not dead; itâ€™s just resting.
Heâ€™s probably not the only one who thinks this, considering figures like Tim Draper estimate bitcoin will eventually reach six-figure status within the next few years.
Cryptocurrency is a digital currency that uses encryption (cryptography) to regulate the generation of currency and verify the transfer of funds, independently of a central bank. Cryptography is the practice and study of techniques for secure communication in the presence of third party adversaries.
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