Bitcoin has hit its lowest level again this year. Is it the beginning of the end for Bitcoin? I bet that question has been asked many times over in 2018.
Bitcoin gained house-hold name status around Thanksgiving last year. That was the kind of year Bitcoin had in 2017.
Bitcoin’s Lowest Level
But now, Bitcoin is down more than 30% since Thanksgiving 2017.
But that’s not as bad as being down 60% on the year, 18% this week alone, and hitting the lowest level of 2018 today. At the time of writing, BTC is selling for $5,148 and is down nearly 9% on the day.
As is the industry standard, Bitcoin tends to lead the pack; other major cryptocurrencies are down, with Ethereum and Ripple losing over 12% and 4.5% respectively. In fact, this loss is so significant for Ethereum that Ripple has just overtaken it in terms of market cap.
Now Ripple is the second most valuable cryptocurrency in the world. Ethereum is third.
All in a week’s work.
Calm Before the Storm
Bitcoin’s lowest level came unexpectedly—BTC had remained around the $6,400 range for most of October despite the rest of the global markets going through sell-offs.
It was around this time last year when Bitcoin began its epic rise, first topping $10,000 at the end of November and was worth almost $20,000 per coin by Christmas.
The CBOE brought in the first Bitcoin futures trading platform on December 10th, but prices hit their peak the same day the CME began Bitcoin futures trading on December 17th.
The futures market gave investors the ability to bet on the decline of Bitcoin price. It was the ultimate gambling platform—Bitcoin, with a value derived from speculation and nothing tangible, could now make investors even more money by betting on, effectively, market speculation.
But today paints a different story. This past week has wiped approximately $40 billion off the entire cryptocurrency market capitalization.
According to eToro analyst Mati Greenspan:
“The next logical level of support is at $5,000 but if that doesn’t hold, the next logical support level isn’t until $3,500. With all the falling prices lately, this definitely fits the definition of a buyers market.”
But do you think anyone is expecting Bitcoin to really kick off again? Do you think if you bought in now that the coin might repeat the good old days of 2017?
Something tells me betting on its decline these days makes for an easier prediction.
Featured Image: Depositphotos/© Fotofabrika