The cryptocurrency market finds itself at a bit of a crossroads. Prices remain relatively low with no real improvements in sight. In fact, some experts consider the most recent bounce back is only temporary. The market will seemingly turn full-on bearish once again in the very near future.
The Bitcoin Rollercoaster Continues
Over the past twelve months, there has been plenty of cryptocurrency market activity. Bitcoin reached a new all-time high in late 2017, dragging other cryptocurrencies along for the ride. A joyous occasion at that time, even though many suspected it wouldn’t be sustained for long. A massive market cap growth for no apparent reason is a sign of possible market manipulation.
Since the start of 2018, nearly all of those gains have been eradicated in the process as all markets have suffered from setback after setback. Bitcoin, for example, lost nearly $14,000 compared to its all-time high value. Ethereum, the number two cryptocurrency, has dropped from over $1,300 down to $439.
To the relief of hodlers, Bitcoin and other currencies bounced back this week. A small uptrend, considering a lot of value was lost in the days prior. However, the bearish onslaught seemingly continues unabated. Anyone hoping for a substantial cryptocurrency market recovery will be unhappy with the way things are going. Some experts predict the next wave of sell pressure is looming on the horizon.
More Bitcoin Price Woes?
Venture capitalist Spencer Bogart keeps close tabs on the cryptocurrency market. As such, he also sees the looming pressure on the horizon. Even though Bitcoin successfully bounced back after dipping below $6,000, the positive momentum may not last long. According to Bogart, the price will go lower pretty soon.
Fueling that market pressure will be crypto hedge fund liquid providers. Anyone serving as an intermediary between a broker and an exchange may be looking to liquidate some assets. For cryptocurrency hedge funds, this is a major warning sign of potentially losing customers and their associated assets. That would be deleterious for the cryptocurrency market as a whole.
The growing pains of cryptocurrency have been well-documented. Whether or not Bitcoin has bottomed remains to be determined at this stage. It is certainly possible, although Bogart isn’t too convinced. However, he does think now is a great time to buy. An even bigger drop for BTC would certainly spook a lot of holders and investors.
Do you think Bitcoin has hit bottom, or is there more room to fall? Let us know in the comments below.
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