A recent analysis of the cryptocurrency charts indicates that Bitcoin (BTC), the world’s largest digital currency by market value suddenly dropped 9% in the 24 hours this Thursday. The digital asset had initially made some gains over the weekend moving above $4000. However, this overnight 9% drop in price for Bitcoin (BTC) means that the cryptocurrency has erased this gain from the last weekend.
Mati Greenspan: Exact Reversal From Sunday Afternoon
The majority of the digital asset analysts in the space did not cite any catalyst for the price drop from Thursday. However, Mati Greenspan an analyst with eToro platform notes that this price from Thursday appears to be similar or exactly a reversal of the price surge that occurred just on Sunday afternoon. It would appear the cryptocurrency resurgence from December 2018 was short lived. Many had hoped that cryptocurrency would start the new year with a bang. But the early signs are not near what experts and the wider cryptocurrency community think.
Bitcoin (BTC) And Others Still Struggling in 2019
The 9% price drop by the world’s largest cryptocurrency by market capitalization on Thursday morning saw Bitcoin (BTC) shift from over $4000 to reach a low of about $3,570.29, as per data reported by CoinDesk. This sudden, sharp drop in price brings the one-year losses of the Bitcoin (BTC) to no less than 70%. Apart from the top digital asset, the rest of the major cryptocurrencies have also struggled, to hold footing in the current framework. Ethereum (ETH) in particular was the biggest loser in the day after seeing losses to the tune of 15%. As for XRP now number three among the top digital currencies by market cap, 9% of its price value was shaded.
According to Mati Greenspan, the senior market analyst at platform eToro, clients had been asking questions about the state of things, but there isn’t any real catalyst for this drop in cryptocurrency prices, “whether technical or fundamental.” In his words:
“The one interesting thing regarding this price movement is that it appears to be a similar or the exact reversal of the price surge that happened this past Sunday. At this point, all gains made since the new year have now reversed, and we have returned to a neutral 2019.”
Bitcoin (BTC) and Other Cryptocurrencies Have Failed to Recover the Peaks They Attained This Time Last Year
Bitcoin and other digital currencies have failed in attempts to recover to their peak prices reached around this same period of time in 2018. The retail mania has worn off as the cryptocurrency market capitalization has dropped by 85% in a year, as per data reported by CoinMarketCap. Investors have actually been waiting for more institutional adoption in 2019 and the launch of Bitcoin futures series. Even Intercontinental Exchange (the New York Stock Exchange parent company) and Nasdaq’s decision to launch a series of Bitcoin futures this year, appears not to have tainted the ongoing bear market.
The CFTC (Commodity Futures Trading Commission), has approved two futures products one from the Chicago Mercantile Exchange and another by the Chicago Board Options Exchange. Yet Jay Clayton the Chairman of the US Securities and Exchange Commission said better custody solutions surveillance is the yardstick for the commission to “comfortably” allow the launch of an exchange-traded fund or ETF.