Bitcoin

Bitcoin prices may face a huge drop again

It has been quite a tough week for bitcoin investors as the Bitcoin was trading at a very low price throughout the week, however, it now looks like there will be a little improvement before the predicted major price drop.

Struggling with various bearish factors Bitcoin arguably the world’s most popular digital currency has fallen close to 20{0ac728dcd10a1f0848214f193583cf4c3e1220f6f1fb6dafa5951ff14c482376} over the last seven days and is predicted to go even lower.

As per Coinmarketcap’s Bitcoin Price Index (BPI)was trading at around  $8,958.88, after dropping down to as low as $8,370.80 earlier in the 24 hour period.

This reasonable recovery was decent, but still, Bitcoin remains down roughly by 19{0ac728dcd10a1f0848214f193583cf4c3e1220f6f1fb6dafa5951ff14c482376} from what it was one week ago for now.

Bitcoin’s ‘Trifecta Of Bad News’

Senior market analyst for social trading platform eToro, Mati Greenspan said that “From a fundamental point of view the market is still processing a trifecta of bad news,”.

He also further added that “the Binance incident, the SEC announcement, and the MT. Gox seller has all played a major role in affecting the Bitcoin price”.

Neelabh Dixit, co-founder of digital asset management firm Cryptomover also had a say on this topic by saying that The effect these developments had on Bitcoin was “exaggerated” because the cryptocurrency markets are largely affected by fear of missing out (FOMO)

Sale of Mt. Gox

Kirill Radchenko, CEO of Payginean open blockchain financial platform for fintech and crypto business believes that The Mt. Gox sale, which was the reason behind the liquidation of more than 35,000 BTC, has been a major factor the recent drop of Bitcoin’s prices.

He also showed concern while adding that nearly a whopping $1 billion worth of additional Bitcoin could be sold over the span of the next few months.

Jeff Koyen, CEO of 360 Blockchain USA, said that it will only “tank the market,” if the crypto markets are flooded with this Bitcoin. While further stating “That’s probably why we’re seeing a sustained, simmering panic,”

Long-Term Overview

A few market observers did forecast that regulatory progress would eventually  help strengthen the market for Bitcoin over the long-term inspite of several analysts voicing a bearish tone in the short-term

An analyst at eToro, Matthew Newton stated that “Cryptocurrencies are still quite in their initial stages of development. As the market grows, we should be prepared to accept regulatory scrutiny”

While also emphasizing that “suitable regulation over the course of time should gradually help in promoting best practice and afford protection to the consumer,”

 

About the author

Rodrigo Alexander

Rodrigo, the tech guru at TokenTornado, he is a college dropout and a true inspiration to the youth. He is been working with us from the very start and handling all technical aspects. His core skills are web designing and development, which has played a crucial role at TokenTornado.

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