Bitcoin Performs Dismally with Below $6,000 Showing
Following last year’s impressive showings, most virtual currencies have struggled to maintain their momentum in 2018. Analysts believe that investors have been eager to ditch major cryptocurrencies after the latest cyber intrusion in a couple of Asian markets.
Notably, other cryptocurrencies like .MVETH .MVXRP also dipped last week on Friday. Data provided by the Coinmarketcap.com shows that the world’s second largest cryptocurrency by value, Etherium’s ether experienced a large 4% drop to $416. The figure represents the cryptocurrency’s weakest showing since April. On the other hand, Ripple’s XRP recorded a 4% drop to $0.44.
Speaking to reporters, Will Hobbs, the Head of Investment Strategy at Barclays Smart Investor, shared that Bitcoin has been flimsy since the prices have not been constant. He mentioned that none of the existing cryptocurrencies were ready to strike out all the criteria to be considered worthy investible assets. He added that he would continue to advocate for individuals to exercise extreme caution in what they decide to do. This is because, at the moment, the rout in cryptocurrencies is not yet over.
Last week on Thursday, the Bank of England went on record to warn banks and insurers about the volatile nature and vulnerable of cryptocurrencies. Amid the innumerable fraud incidents reported, the cryptocurrencies have been unable to attract any of the big institutional players. Instead, the big kahunas have opted to look on from the sidelines in fear of regulatory worries. Experts believe such organizations are waiting to see if the cryptocurrency bubble might burst before they decide to commit.
However, all is not doom and gloom for the cryptocurrency world. Investors seem to be all the more eager to keep remitting funds into the purchase of new digital currencies. During the first 5 months of 2018, the total number of sales jumped to $13.7 billion. The figure represents about twice the amount raised in 2017, as per a report released to the masses on Thursday.
One cryptocurrency trader, Ran Neu-Neu shared that there’s great likelihood for Bitcoin to decline even further. Speaking on the CNBC show, “Crypto Trader” Neu-Neu mentioned that this was only the first signs of what is to come. He insisted that the market was bound to take another nose dive. He suggested that the odds were in favor of a 60 percent bear market. A significant difference between the 16 percent odds of a bull market.
Neu-Neu, who also doubles-up as the founder of Onchain Capital, said that a bear market would mean they would need to test $5,350 as a new low. Surprisingly, this is not the first time Neu-Neu has predicted a bleak future for bitcoin. Earlier in June, he cited that he expected Bitcoin to drop to about $5,000. Those in the know seem to believe that bitcoin mining would outweigh the gains made in production if the value of bitcoin dips to about $8,000. He regards any figure close to $5,000 as making absolute sense from a numbers perspective.
In a recent Digital Journal article, investors were said to be wary of risky cryptocurrencies. Most of them opted to take out their money and purchase bitcoins. Estimates show that Bitcoin is quite dominant having reached a peak high of 43 percent.
As conditions keep improving, it would not be surprising if there was another recorded BTC price decline following a number of short positions going through. Still, experts are optimistic that the figure will rise above $6,000 again. On June 30th UTC, the bitcoin price was a bit over $6,000 at $6,203. This figure has climbed higher to a bit over $6,500 at $6,599. Some analysts are optimistic that Bitcoin could slowly but surely be making a recovery.
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