It is no secret that Bitcoin is not exactly in its heyday anymore, since its crash in this year has made records for the cryptocurrency world. Unfortunately, it is a bad record, and many individuals watching this demise have called it one of the biggest collective obsessions that the financial industry has had in year.
Bitcoin has fallen approximately 70% since its high value at the end of 2018. This downward trend has been going on for the last four days, though it is getting all too close to the 78% peak-to-trough plunge of the Nasdaq Composite Index. Many other digital coins are nearly at zero anyway, which is fairly similar to the path of Pets.com and other ICOs that did not make it past the early 2000s.
Even though Bitcoin has suffered before and come back, it is unclear if they will be able to repeat their previous success. Much of the public has seen enough of the cryptocurrency industry to decide whether they are for or against is, and the odds are not in the favor of exchanges and digital tokens. Some people direct attention to the potential recovery, which will rely on the institutional investors as the primary buyers. Unfortunately, investors that hold the biggest potential funding have stayed away, due to security and regulatory concerns.
According to CEO Peter Smith of Blockchain Ltd, these investors will “have to see the market reverse before [they] see” the other financial institutions making a decision. They have not quite seen it yet, since Bitcoin has experienced a 4.2% drop on Friday, reaching their lowest value in over 7 months – $5,791. However, in the early hours of Saturday, BitCoin finally experienced an increase of 8.6% to $6,397 in Tokyo at approximately 11:35am.
The increase on Saturday has not been substantial enough, as the Bitcoin is still 55% down. They have suffered less than Ether and Litecoin, who has declined from a height of $830 million to a dramatic low of $236 million, according to CoinMarketCap.com.
Even though its hard for the industry to find new catalysts for Bitcoin’s changes, both South Korea and Japan have made some changes in their regulations that may have been part of the reason for the decline. Regulators have started pushing into the industry with new standards and security requirements, due to the fraud, money laundering, and other illicit activity that happens.
Tokens with less notoriety have suffered the most with these drops in participation in the industry. There is a record of these coins called Dead Coins, which lists over 800 coins that have absolutely no value at this point. However, a report on Coinopsy believes that the amount is closer to 1,000 coins. Less than 4% of the coins that have a market cap of at least $50 million have any promise in their success.
Even though it is unlikely that Bitcoin will reach $0 in value, it is still a rather substantial bubble.