This could be termed as the busiest and most testing week for Bitcoin investors. This is after Bitcoin went down by almost 20% after it had reached its all-time high on Monday. This 20% weekly decline is the biggest in 3 years. It’s actually not a bad week for Bitcoin only since Litecoin went down by 43% while Ethereum dropped by 36%.
Adding more bad news to the already anxious investors, Michael Novogratz said that he expects the drop to go as low as $8,000. In his interview, Novogratz said: “We never liked the market conditions, and we wanted to re-evaluate what we are doing.” Last week he had actually predicted that Bitcoin would hit $40,000 within a few months.
Yesterday Bitcoin dropped as low as $10,776 before it recovered to $14,303 in Coinbase. The last time Bitcoin traded below $10,000 was on December 1st. The rise in Bitcoin price up to $19,000 had been attributed to the companies that had agreed to trade futures. Before the launch of the future Bitcoin’s price had actually doubled.
All cryptocurrencies are facing the biggest test. This is because people have been arguing about this currencies with people calling Bitcoin a bubble while others see it as the game changer. These groups will be watching closely the outcome of the current situation.
According to the CEO of Sharps Pixley Ltd Ross Norman: “The futures markets may give the sharks a venue to strike since they are now circling the digital currency. Bitcoin’s biggest drivers are the retail investors but there some very aggressive funds who are looking for the right time to press the price lower.
Coinbase yesterday temporarily stopped all buying and selling because of delays in approval of transfers due to high traffic. This is because the exchange company which is one of the biggest in the world has seen Bitcoin’s transactions go up by nearly 30%. This also saw transactions fees go up to $55 based on Bit Info Charts.
Most of the current news and moves connected to cryptocurrencies appear to start believing the bubble theory. The shares of Long Island Iced Tea Corp. rose by 289% on Thursday after Hicksville of New York rebranded itself as Long Blockchain Corp. According to the Governor of the Bank of Japan, Bitcoin is not functioning normally like other means of payment because of the currency being used for speculation.
All in all, cryptocurrencies are still attracting very established players. A good example is Goldman Sachs Group Inc. who are setting a trading desk to make markets of currencies like Bitcoin. This is a business that the bank wants running by June 2018.
Cryptocurrencies’ drop is scaring a lot of investors. The drop could be good to encourage people to study the market before making their investments. More to that it will also make people not invest all their savings in cryptocurrencies but invest amounts they are prepared to lose.