The rates of cryptocurrencies continue to fall down. The price of Bitcoin today (12/12/2018) is $3458, despite the words of many crypto investors, opinion leaders and industry influencers about the skyrocket numbers for the end of the year.
The Fundstrat Global Advisors co-founder Tom Lee believed till the end of the year 1BTC will cost $25 000.
Now he says:
“Days like this, it does make me wonder about my prediction. This past few days has definitely been a negative development.”
Ronnie Moas founder of Standpoint Research predicted another thing:
Bitcoin price could hit $50,000 in a few years.
Later on he claimed that the total value of all cryptographic assets will soar to $2 trillion over the next 10 years.
Michael Novogratz former Fortress hedge fund manager also said that Bitcoin can multiply more than four times till the end of 2018:
“Bitcoin could be at $40,000 at the end of 2018. It easily could. Ethereum, which I think just touched $500 or is getting close, could be triple where it is as well.”
Afterward, at the Economist Finance Disrupted conference in 2018, he added:
“I don’t think it breaks $9,000 this year”.
November was a really hard thing to understand when it came to the crypto world, a lot of crypto owners just lost the plot.
The average Market Cap of cryptocurrencies decreased by 14% and was $180 million, while on the start of a month it was $210 million.
The tendency continues in December.
A lot of HODLers and crypto-traders feel FUD about the future of crypto.
Read more: What does HODL mean?
News platforms just warm up the negative connotation of the going-on things and blind people with science.
But we advise you not to worry, keep calm and believe that all the prices will rise again and become even higher than in December 2017.
All you need to do now is to understand the reasons for the crypto crash, thus to be aware of future drop downs, and to never miss a trick.
Here are the reasons for the Bitcoin crash:
The first one, and the most crucial to our opinion, the hard fork of Bitcoin Cash network on November 15, 2018.
The update of the number 4 by Market Cap cryptocurrency caused a split in the crypto community and forced two competing versions – Bitcoin ABC and Bitcoin SV.
Founder and CEO of cryptocurrency investment firm BKCM Brian Kelly said that the crypto market is experiencing a “crypto civil war” as the announced “hard fork” in Bitcoin Cash failed to gain consensus among peers in the community.
After that a lot of crypto owners decided to make an exit, thus a lot of crypto listings started to fall down.
However, the hard fork of Bitcoin Cash is not the only one reason of Bitcoin and crypto market crash.
Mati Greenspan, Senior Market Analyst at a social trading platform eToro names three other factors that contributed to a drop in Bitcoin price:
“First, the Bitcoin Cash hard fork is turning out to be an arms race among bitcoin miners. It may not have direct impact on price but it’s something people are concerned about — there is a fear that miners might be diverting mining power away from bitcoin into Bitcoin Cash. On paper, however, bitcoin has more than enough hash rate to maintain their transaction rate.
Another contributing factor is the selloff in tech stocks, which could be having a spillover effect into crypto markets.
Finally, from a technical analysis standpoint, as bitcoin’s price falls below USD 6,000 we’re seeing liquidation: stop loss orders automatically going into effect and/or people trying to play the breakout.”
Founder of Metal Pay, a blockchain-based payments and rewards company Marshall Hayner insists on another factor:
“To put it plainly, today’s dip is likely indicative of the fact that the most recent round of crypto speculators are capitulating. Thanks to revised short-term expectations that call into question the idea of a bull run by the end of the year, many are likely taking their chips off the table. A key takeaway from this most recent decline is the continued need for crypto liquidity, which will likely be found in future stages of industry maturation, hopefully in the form of adoption by retail consumers in their day-to-day activities.”
Donald Bullers, North American Representative for Elastos, a developer of an internet operating system also supports the opinion of Marshall Hayner:
“It’s safe to say that Bitcoin Cash’s upcoming hard fork was stirring uncertainty amongst crypto investors, and forecasters across crypto and traditional markets alike have predicted a prolonged bear market heading into 2019. Crypto investors have proven to be highly reactive to changes across the landscape, and this dip could be the most recent case study of that phenomenon.”
Casey Kuhlman, CEO of Monax Industries, a blockchain and smart contract software technology company:
“Crypto price slumps can often create misconceptions about the future of our industry, but perhaps what is most important to remember during periods of volatility is that the underlying blockchain technology solves real-world problems across the real economy. Crypto prices may rise and fall for reasons that are difficult to identify, however, the blockchain industry will remain strong and continue to grow.”
Rohit Kulkarni, Managing Director of Private Investment Research at SharesPost, an online platform that links investors with late-stage venture-backed companies and shareholders:
“We believe that there are three likely catalysts that could result in a crypto market turnaround in the next six months: There is greater clarity from regulators which could embolden the market; A select group of blockchain startups that have completed token offerings in the past year finally announce innovative commercial products; As smart money and institutional capital keeps piling up, investors pull the trigger and call the bottom of the market.”
Meanwhile, Meltem Demirors, Chief Strategy Officer at CoinShares, a crypto-focused investment company, also supports the theory of Bitcoin crash because of Bitcoin Cash hard fork.
She also suggests that smaller cryptocurrencies might be in trouble.
But Meltem Demirors says that some events will positively impact the future situation on crypto market, like the launch of crypto-trading platform Bakkt.
And remember, Bitcoin is a honey badger, he does not care about anything.
So stay tuned and plan your crypto future with TRASTRA.
Here are your crypto plans for January 2019: Blockchain and Crypto Events, Jan 2019