Bitcoin’s 20% drop the previous week has led to traders and analysts believing that the prices will drop below $US 5,000 before the end of the year.
Was Bakkt Launch Responsible for Bitcoin Dump?
The Bakkt launch which was highly anticipated led to a huge disappointment among investors, the reason being only 72 monthly contacts were recorded on its launch. This led to a huge dumping of Bitcoin. On the other hand, rival exchange, Chicago Mercantile Exchange(CME) traded 220 contracts in the first hour when it launched its Bitcoin Futures in December 2017.
Bitcoin managed to establish a yearly high of US$13,830 in June, followed by a 40% plunge the previous week. Furthermore, the prices plummeted to US$7,823.91, before rising to US$8,372.25 on Tuesday evening.
Stephen Innes, the Asia-Pacific market strategist for foreign exchange trading platform AXI Trader, believes that institutional investors were at play behind the recent price drop in Bitcoin.
Moreover, he does not expect the scenario to improve any time soon. He believes that sell-off will intensify and Bitcoin will plunge to US$5,000 before Christmas
He further said that the Bitcoin price has a direct correlation with emerging-market assets. Interestingly, he believes that Bitcoin’s performance will improve as the US-China trade war or Brexit is resolved soon. As a matter of fact, through this period Bitcoin price has shown upward trends. While it remains 24% below June’s cyclical high of $13,930, it climbed back above resistance levels at $10,000.
Nicholas Gregory, chief executive of the blockchain specialist, CommerceBlock, said he believes the turmoil caused by the Brexit debacle makes up for a strong investment case for Bitcoin. Undoubtedly, Bitcoin’s price has gone up as the Pound went South. He further alleged that no deal-Brexit can even trigger a major breakout for Bitcoin.
Bitcoin Fundamentals Hold High Despite Bloodbath
August of this year saw the Shanghai Composite Index lose 1.6 percent, while the Hang Seng Index dropped a larger 7.4 percent, but both indices managed to finish September in positive territory.percent
Ben Roth, global head of trading at Kenetic Capital, a digital asset proprietary trading firm said the overall interest for Bitcoin has increased as fundamentals supporting the cryptocurrency still remain strong.
“The continual printing of money by global central banks and record low-interest rates in all major currencies are likely to provide a favorable tailwind for bitcoin, just as they have done for gold, silver, and other commodities,”
Will Bitcoin plummet further or see a price rise at the end of Q4? Let us know, what you think?
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Coming from a physics background the unpredictability and intrigue of the cryptoverse attracted me to take a dive in this field. I am all eyes and ears for the latest trends in blockchain and crypto sphere. Whenever I am not writing or researching, I love to read sci-fi novels, play basketball and watch action movies. I strongly believe that blockchain and cryptocurrency will bring lasting transformations in people’s lives in the years to come. You can reach out to me at supriya [at] coingape.com.