What Time Will Ethereum and Bitcoin Will Thrive Again? Jan 2018

Bitcoin falls accelerate as currency collapses in 2 hours – but you can still make money from it.

The following article, outlines personal views and is not intended to provide investment advice.

In the past day Bitcoin fell from above $14,000 to $11,300. But given the cyber-currency is still up 1200% in a year, is this just the beginning of the fall?

Ten years ago Bitcoin didn’t exist. Five years ago they cost $12 each. 12 months ago they were almost $857 and just last month they were worth almost $20,000 each.

Then they crashed.

Since December’s high Bitcoin’s price has dropped more than $7,000 – in the past day alone almost $2,000 has been wiped from the price according to figures from Coinbase.

Mirror.co.uk has published a story about the fall of Bitcoin, That’s a fall of over 14% in a day, 20% in a week and more than 40% in the past month, according to Coinbase figures.

In just two hours this morning the price dropped $2,000, for context it originally took the cryptocurrency more than five years to add that much to its worth.

Since then there’s been a small rise, but at the time of writing, it’s still thousands down on its mid-December peak.

But is this the beginning of the end for the cryptocurrency or just a blip on its ascent?

The beginning of the end or the end of the beginning?

The good news for people who believe in the future of Bitcoin is that this is a pretty classic price drop.

When traditional shares or currencies rise over time, there are points where people who’ve bought them to make money sell some of their holding. It’s called “profit taking” and tends to happen at key price levels.

Two months ago Bitcoin broke through $10,000 (£7,421) and the people looking to cash in some of their growth took money out.

The price fell for a bit as a result, then surged on again to$18,000 – when people started taking money out again and dropped the price to $15,500.

After that, it soared to an all new record – almost touching $20,000 almost exactly a month ago.

Since then it’s dropped down to below $13,000 three times, and risen above $16,000 three times too.

But it’s now fallen further than at any time since December’s peak.

Neil Wilson, senior market analyst at ETX Capital, said: “Has the bubble finally popped? It’s hard to see the bell tolling just yet.

“Large price swings have become so normal that it’s hard to decide – we can easily see this market bounce back in very short order.

“Whilst there have been some hacks, public infighting in the mining community, lots of rumoured forks and regulatory pressure building on some fronts, this is likely to be a simple bout of risk-off selling as investors rebalance towards year-end.

“It looks like it’s time to cash in the gains and spend the winnings on a bumper Christmas.”

The bad news is that this collapse might be something else entirely.

Bitcoin, Ethereum and almost every other cryptocurrency is plunging

According to TechCrunch Article, The crypto market suffered huge loses right before Christmas last month although most valuations had recovered since, such is the volatile nature of the space. That could yet happen following today’s slump. Indeed, some financial market watchers predicted prices could jump this week as Wall Street bankers collect their bonuses.

Adam Webb is editor in Smartereum, blockchain and currency news, where he produces updates on Blockchain, Ethereum and other alternative cryptocurrencies.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.