Bitcoin (BTC), as well as the crypto market, experienced a free fall in mid-November. The value of the coin declined massively below the $6,000, $5,000, and $4,000 levels down to the $3,400 level. The decline in the value of Bitcoin and other digital currencies continued for several days. However, the digital currency started a slight recovery towards the end of November.
Bitcoin (BTC), which was trading below the $3,500 mark, surged higher and broke over the $4,000 level. The digital currency even saw an enormous gain of more than 15 percent in less than 24 hours. Bitcoin (BTC) surged over the $4,300 level. Unfortunately, the recovery of Bitcoin (BTC) is now on hold.
Bitcoin, after recovering over the $4k level, failed to cross into the new month on that level. Bitcoin (BTC) surrendered almost 50 percent of the gains it amassed during its recovery on the 30th of January.
Has the Digital Currency Market Reached the Bottom?
Analysts at FX Pro Insights – a research firm based in the U.K – said the selling above $4k is near-term traders booking some profits. According to the analyst, the real question is “has the digital currency market reached a bottom?”
A lot of investors and traders are now taking an optimistic approach to the BTC market. The recent decline of Bitcoin (BTC) to the $3,500 mark was also a crucial support to the digital currency. According to the analysts at FX Pro Insights, within this context, it is worth noting that speculators might soon start profiting from this trend, which might result in a new wave of sales.
However, investors and traders in the market are hoping that the market has reached the bottom. Everyone is expecting a sharp recovery in the value of Bitcoin (BTC) and other digital currencies in the market. By this time last year, Bitcoin (BTC) was seeing double-digit gains, heading towards the $20k mark with a full speed.
While the plunges in the market were attributed to a lot of factors, some of those factors have been resolved but the market is yet to recover. The recent declines were attributed to the split and war in the BCH network. Nevertheless, the dust is settled, is yet to recover significantly.
Bitcoin (BTC) Carried the Altcoin Market Along
Bitcoin (BTC) wasn’t the only digital currency affected by the recent plunges. The free fall was contagious and almost all digital currencies in the market were affected. Ethereum (ETH) lost more than 38 percent of its value to the massive plunge in the market.
Bitcoin Cash (BCH), a culprit of the market crash, was also greatly affected. The digital currency has lost more than 58 percent of its value after the split on its network. XRP (XRP), Litecoin (LTC), EOS, and other digital currencies were also affected by the declines.
Bitcoin (BTC) Price Today – BTC / USD
Bitcoin (BTC) is currently changing hands at $3,982 after losing about six percent of its value over the past twenty-four hours. The digital currency currently has a market cap of $69.30 billion and its trading volume over the past twenty-four hours is $5.95 billion.