Since the start of 2018, Bitcoin has slid continuously. The 2017 peaks now seem like a mirage compared to the current price below $4,000. In the midst of all these crypto market noises, questions are emerging on the strength of the recent Bull Run. The cascading plunges are making more investors to sell off their assets and count their losses.
Some experts expect it to fall to the $2,500 levels while others remain optimistic that it will rise again soon. The latest plunge occurred on November 14 and the Bitcoin Cash split got the blame for it. After Bakkt postponed their launch, the crypto market fell further. However, even with the newly acquired stability in the Bitcoin Cash market space, Bitcoin continues to dwindle.
Experts believe that crypto will continue to lose with a few periods of sideways trading experienced although they believe another drop is imminent. Anthony Pompliano explained his bearish sentiments on Bitcoin during an interview with CNBC and he believes that it will lose up to 85% compared to the December 2017 peaks.
Bitcoin is the most secure transaction settlement layer and it is the best performing crypto asset over the last ten years. It has experienced over 80% drops in its lifetime. But, it is still up over 400% for the past two years. There is a high possibility of a dramatic rally. However, that is only possible in the case that the altcoin fiat mining processes return huge profits.
There is no optimism in the entire crypto market at the moment although Bitcoin Cash has gained over the weekend. Investors and speculators are staking Bitcoin as it falls awaiting for the bear market to push it further downwards. There are no incremental new buyers since the existing investors are losing faith in the digital currency.
The plunges are making more and more investors to exit the crypto market and most of them are losing faith in Bitcoin. Maybe Bitcoin will not achieve its desired status as a store of value since it is still highly considered as a speculative investment. Cryptos and equities are crushing since fiat is getting somewhat sucked out of the system by the United States Federal Reserve’s reverse-QE.
Also, the ‘trade wars’ together with the increasing ‘volatility’ of governance worldwide is shifting the global financial order which is affecting the markets. Currently, the cost of bitcoin production through mining is more than the price of the crypto which has put many retailers and miners ‘under water.’