Easy Come Easy Go Trend Continues in the Cryptocurrency WorldJune 29, 2019
The mega gain from Bitcoin has been swept away as quickly as it came. The price of the Altcoins also fell down with the Bitcoin. Ether and Litecoin saw the price drop down by 14%.
About six months ago, the price of the Bitcoin was at $3,600. There were memories of crypto-bubble when the price kept going high until $13,000 and more. It just appears that the Altcoins are not feeling any benefits. The recent Bitcoin correction did not spell any good news for the token.
The price fluctuation between extremes saw exchange overloads as well as enormous volatility.
Robert Sluymer, the technical strategist, stated, “A 20 percent-30 percent pullback would not be surprising and very consistent with Bitcoin’s recent bull-market pullbacks.”
The Bitcoin market is now appearing incomprehensible and chaotic. The miners are also facing issues with mining difficulty, and it is at an all-time high now, and the miner sentiment might be modified depending on the Bitcoin halving in 2020.
Pantera Capital published its forecast thus: “Inflection points occurred 376 and 320 days before the 2012 and 2016 ‘halvings,’ respectively. Taking their average of 348 days could indicate a bottom on June 10, 2019.”
Meanwhile, 1000 Bitcoin mining machines have been seized after a recent power spike.
Arash Navab, an electricity official from Iran, stated, “Two of these bitcoin farms have been identified, with a consumption of one megawatt.”
Of note, the banks in Iran have been banned from dealing with cryptocurrency dealings. However, several investors are considering Bitcoin as an alternative store of value.
Mahsa Alimardani, a researcher, stated, “Everyone’s talking about Bitcoin and how to get it.”
The dramatic collapse of the price of Bitcoin has been criticized by many who state that the bulls are licking their wounds. Despite the range, bound price trends, and the price correction, a wild move of the price in either direction is not ruled out.
Technical giants are moving into the crypto space, and there is a broader acceptance of different types of cryptocurrency based on their use cases.
Solomon, CEO of Goldman, stated, “Assume that all major financial institutions around the world are looking at the potential of tokenization, stable coins, and frictionless payments.” However, he felt that tech giants who have several other concerns might not want to submit to regulatory constraints like JPMorgan or Goldman Sachs. He thought that they would “Try to seal partnerships with banks rather than become banks themselves.”