The price of Bitcoin continues to decline and now down to another two percent (2%) in USD value and trades under $3,400 before January 2019 closes. Analysts have described the three-day fall as a decisive trading period.
Though this is not an ultimate low for the cryptocurrency, analyst like Willy Woo of the website Woobill thinks that the price of Bitcoin could go as low 30 percent. Though the digital currency is suffering on to holding support at a price of $3,500, it still stays to trade at $500.
Many experts see that Bitcoin would fall to only at $1,300 or lower, but others think that its performance will improve and still glide to at least $2,200. These last days’ downturn, the cryptocurrency’s overall market capitalization has set to $111 billion.
Despite such drastic movements in the market, it still failed to shake investors and users’ confidence with Bitcoin. Thus, it is predicted to have a recovery sooner this year.
Bitcoin’s Institutional Demand Decay
The cryptocurrency and Bitcoin industry has garnered so much attention – whether positive or negative – from the market since its birth. Many have been amazed, and companies explored their luck and investments in utilizing the digital currency and its technology. Companies like PayPal, Google, and Facebook have gone out their regular to try out space and what it offers.
While Bitcoin’s performance has been awe-inspiring through the years, it also owns its cycle; by which, it experiences sudden decline now. The digital financial market creates an impression of other firms and businesses that investing in Bitcoin or any other cryptocurrency would have a more uncalculated risk that its usual.
Other institutions also do not see that this is only a transition; and thus, being skeptical is still good to ensure capability of coins to grow and prosper. With Blockchain.com’s losing its institutional head, it created a ripple in the market. It could mean that there are better strategies to come along, but this could also mean a more decline in the cryptocurrency.
Struggles happen to every business, but what consumers want to see next is how the firm would keep their obligations and operations intact. It is essential for the users and investors to see if there is a viable arena for their investments that would not sacrifice their efforts since the very beginning.
Responsible for Bitcoin’s Value Decline
The fall in the price of Bitcoin is since then alarming especially for miners and investors. According to many, the fake news regarding the abandonment of Goldman Sachs’s plan to craft a crypto trading desk was to blame why the price of the cryptocurrency might be acting up.
It happened last September 5th, 2018. Before then, Bitcoin was sitting comfortably at $7,300. Since the issue spread out, the price of the said crypto declined to $3,400 (at the most current). If the trading volume of Bitcoin does not increase, its value will fall to $3,200 just like last year’s low.
OTC or Over-The-Counter crypto desks have started to appear. High net worth stakeholders and regular earning ones are already showcasing interests and first move to cash out or buy in through huge amount capitals.
Such OTC can course or can be considered an excellent venue for large crypto transactions. However, whatever the process in the said desk would be hidden from a regular trader. Thus, if it continues and people use it for exchanges, it would inevitably affect Bitcoin’s price and other digital currency in the market.
OTC trades privately and orders books are not to be touched. While it could explore some advantages, it would be a massive threat for the cryptocurrency.