Bitcoin’s Market Cap Drops to $88 Billion, Hits 13 Month Low as Crypto Investors Look for Answers
After hardy being stable for a couple of days, Bitcoin is again falling down. The world’s largest cryptocurrency is now trading at roughly USD 5,175 (at the time of writing), with a market capitalization of USD 89.96 billion.
Bitcoin Cash Fork
While the initial crash a few days ago might be open for speculations on what was the main cause, the current one is definitely due to its fork splitting up. The Bitcoin Cash fork has been a very close watched event by investors. There was no clear winner in the fork, with ABC and SV being closely matched in terms of block generation. The sudden shift of balance occurred when a big mining company decided to end the stalemate by switching a major portion of its BTC mining operation in favour of Bitcoin ABC.
The initial shake up due to the fork and later on the mining power shifting has resulted in shaky investors, who seems to have decided to pull out of the market until the confusion dies down.
The situation means that as the dust settles and a clear winner emerges, investors will be likely to take advantage of the low price of cryptos and actually start investing back. However, the latest drop in value shakes the notion that Bitcoin and other crypto markets were maturing. Most of 2018 had seen mostly bearish outcome with prices steadily declining.
This had actually boosted institutional investors, with them seeing the market maturity as a sign of a less risky investment. The double bottoming out, however, will definitely shake the investors’ confidence.
Predictions By Leaders
Different outcomes, both bearish and bullish, are being predicted by leading Bitcoin enthusiasts and professionals. According to Willy Woo and Crypto Rand, the world’s largest cryptocurrency is going to fall even further to a rough range of USD 4500 to USD 5000.
On the other hand, Tom Lee of Fundstrat has a very optimistic outlook on the situation. He believes that the dipping of value is only short term and Bitcoin will bounce back, even reaching USD 15,000. Initially predicted to reach UDS 25,000, the new outcome, Lee pointed out, is based on the latest fork affects.
Prediction By Maths
According to the trends Bitcoin is generating, there is a good chance there will be a bull run for a heavy upside correction in retaliation to the falling price. If the bulls fail to make the run or even maintain the UDS 5000 floor, the bears will take over for a longer run and bring value of Bitcoin even further with USD 4,500 in sights easily.
The Bitcoin NVT ratio (market cap divided by average daily volume), does show a trend towards more bearish activity. Will the bears clamp down more on the digital currency? The next few days will reveal all.