At press time, the number one cryptocurrency by market cap – bitcoin – has fallen below the $8,000 mark yet again and is currently trading at approximately $7,950.
Bitcoin: It’s Ugliest Week in a Long Time
The currency has had a rather ugly week, falling by more than 22 percent in just a matter of days. The trouble started last Wednesday when the currency dropped from the mid-$9,000 range to about $8,100 in just a matter of minutes. From there, the currency struggled to pick itself back up, rising to $8,600 by the middle of the day but then falling back down to $8,300 less than 24 hours later.
Since then, the currency has shown resistance to spiking beyond $8,100 and is now hovering near a new low.
As with every drop, analysts are coming in with cases of the old gloom and doom at their heels, with one source claiming that bitcoin could fall into the $5,000 range over the coming months. If this mark is hit, bitcoin will then drop into the $2,000 range.
Data like this needs to be taken with a grain of salt. For one thing, technical charts are not always correct, and second, it seems unlikely that the currency would drop that heavily in such a short period of time – especially when it’s been revamping itself since April.
However, we can’t ever forget the dilemma that stirred in 2018, arguably the worst year for bitcoin. After reaching an all-time high of nearly $20,000 by the end of 2017, the following year was consistently marred with drops in BTC’s price – drops that ultimately took it into the mid-$3,000 range by Thanksgiving. The number one cryptocurrency ultimately lost more than $7,000 of its overall value in roughly 11 months but recovered somewhat five months later and eventually rose into the $13,000 range in the summer.
What we must keep in mind is that it took nearly a year for bitcoin to drop that much during its first low-end cycle. The idea that bitcoin could fall into the $2,000 range by the time we’re ready to say good-bye to 2019 seems a little far-fetched. As we’ve learned, anything is possible in the crypto world, but it does seem outlandish that such a massive drop would occur in just three months or less.
Did Bakkt Really Do This?
What’s the reason for the major drop this week? Many industry experts are blaming Bakkt, the new crypto trading platform brought on by the Intercontinental Exchange (ICE). Many believe that the crypto industry isn’t ready for such a regulated platform yet, while others say that the hype and hoopla surrounding Bakkt ultimately died down since it was first introduced in late 2018.
Either way, the venture is now available to institutional traders, and many are hoping for bitcoin to jump back on its feet.