Bitcoin (BTC) Price Finds New 2018 Low at $3,180 USD as Investors Seek for the Bottom’s Bottom
The mathematics of market economics demains a cyclical progression. When Crypto prices hit their peak in January many were bracing for the inevitable downturn. This came and the markets settled at an unexpectedly low $6000 range. Then last month prices began dropping again, this time moving into the dangerously low $3000.
Despite the recent tumble, the flagship coin had held fast at around the $3400 value. However, that came to an end when Bitcoin (BTC) once again faltered on the 13th of December, tumbling to a new year-to-date low at $3,220.This drop has seen a cumulative effect with more than 3 percent shaved off the total market capitalization of the collective coins' market, in just over a day of trading.
In real monitory terms that is nearly $5 billion. At the time of press, the total market value of all circulating cryptocurrencies is just a shade under $105 billion.
While this statistic is sobering when one considers that the BTC market cap alone, in January, stood at nearly $300 billion, it is interesting to note that the 24-hour volume has not fluctuated too much. While the ongoing bear market strengthens its stranglehold, Bitcoin has been able to maintain its primacy, still leading the pack with a 55% market share.
This is only expected to get better as countries introduce more stringent regulations, ICOs and altcoins are expected to start to crumble.
Cryptos In Turmoil
After oscillating between the 3,300 and 3600 range for a couple of days, many had assumed the worst was over. Thursday shattered that illusion when the prices started another downward movement. The prices began sliding steadily and then, presumably due to sell orders, kept slipping. At one stage hitting $3,220, where the asset’s year-to-date low lies. At the time of writing, this has jumped back to $3320, though still losing over 3 percent.
As expected this sort of turmoil extended to other cryptos, small and large. While some were able to escape relatively unharmed; Ripple (XRP), for instance, losing 2.4% while Ethereum (ETH) was down by 3.6% in the last 24 hours of trading.
Some were not so lucky and suffered a fair bit; the likes of Stellar’s XLM losing -7.2%, Bitcoin SV down -8.8% and Bitcoin Cash behind by a massive -12.3% in the same period. Apart from a handful of coins, most had a similar story of loss.
Cryptocurrency: A fad or undervalued gold
As has become the norm, any time the market prices go down, pundits call it the demise of the blockchain. A recent comment on the current state of cryptos by Jani Ziedins, an analyst from CrackedMarkets, followed familiar lines.
He raised concerns about the inability of cryptros in general and BTC in particular, to break out from its price bracket. This he feels should concern investors as the longer these depressed prices are maintained; the more the asset is undersold, the less likely it is to bounce back.
He added to this by stating that “the public has largely written cryptocurrencies off as a fad,” and are putting their money elsewhere.
This is in stark contrast to the views held by Tom Lee, head of research at Wall Street’s Fundstrat. The ardent crypto supporter has been quoted saying he sees BTC as being undervalued. According to his estimates, the true value of BTC should be in the range of $13,800 to $14,800.
This he feels is due to the regularly growing number of active wallet addresses and the ever-increasing transaction counts. Thus with continuous and ever-expanding use, this price band will ultimately be reached and settled upon.
Lee is not alone, with many analysts and experts sharing his view. While it is always an outside possibility that this will all burn, the fate of this technology lies in a little faith. Whether this latest retreat halts here or continues, remains to be seen.