Bitcoin Price Today: What is triggering the Bitcoin sell-off? Bitcoin Predictions 2018

Bitcoin is not alone in the downturn. The other cryptocurrencies have fallen significantly as well. Currently, Bitcoin is trading around the $ 8200 mark. However, it has recovered from the lows which it just made a few hours ago.

SEE ALSO: Bitcoin Price Predictions 2018: How high can Bitcoin price go in 2018? Up to $1 million or down to $100? (In-Depth Analysis)

Recovery on the cards?

The low which Bitcoin made in the last few hours was $ 7700. Since then, it has recovered by almost 5%. However, it remains to be seen whether this recovery is temporary or whether it will stay for a longer period of time. Currently, however, due to the news that Google will also be banning cryptocurrency advertisements, most of the cryptocurrencies are falling. Facebook in January had already banned ICO as well as cryptocurrency advertisements. This is the reason why the advertising space for ICO’s as well as cryptocurrency related businesses is shrinking drastically. Also, Google made it clear that it will be making changes to its financial policy in June and after that, cryptocurrency advertisements will not be allowed.

Google further stated that most of the cryptocurrency businesses are similar to gambling. This is the reason why in order to maintain the reputation of their platform, they will not be allowing such advertisements.

Google believes that since the majority of the businesses are opaque in nature and do not comply with any kind of regulation guidelines, they can be considered as scams. This is the reason why Google wants to ban such advertisements.

Even though, the news resulted in a fall in the cryptocurrency prices but it is actually welcomed by many of the cryptocurrency enthusiasts. The cryptocurrency enthusiasts think that this will bring more transparency to the industry. This will also ensure that the scam artists do not use the cryptocurrencies in order to scam the users. When this happens, users will trust the cryptocurrency market much more. It will also become easier for the companies to raise capital in the future as the industry will become much more transparent. This will actually increase the investor base in the longer period of time.

It remains to be seen whether this news flow by Google will actually be positive in the longer period of time or whether it will be a trigger for something much more bigger in terms of the falling prices of cryptocurrencies. Many of the investors are just waiting with bated breath to find out if there is any recovery on the cards.

Bitcoin Price Stops Plummeting

Bitcoin’s slump over the last couple days seems to have taken a breather, with a slight recovery on Thursday morning.

The fall started Wednesday after a double-whammy of bad news from Google (which banned cryptocurrency-related ads on its network) and the International Monetary Fund (which urged an international crackdown on the use of cryptocurrencies for money-laundering.)

Bitcoin hits below $8K
First Bitcoin fell below $9,000, then it kept on going, passing $8,000 early Thursday morning. It hit a low of around $7,676—its worst level in five weeks—then bounced back up again. At the time of writing, around 8 a.m. Eastern Time, one Bitcoin was worth around $8,300.

The volatility probably wasn’t all down to Google and the IMF. Wednesday also saw a hearing at the House Capital Markets, Securities and Investments Subcommittee, at which some members of Congress expressed strong antipathy towards cryptocurrencies.

The committee’s chairman, Michigan’s Bill Huizenga, reportedly said that “this Congress is not going to sit by idly with a lack of protection for investors.”

Californian Representative Brad Sherman, meanwhile, called cryptocurrencies “a crock,” adding that “they allow a few dozen men in my district to sit in their pajamas all day and tell their wives they’re going to be millionaires.”

BTC/USD

Bitcoin failed to break out of the descending channel and the moving averages, hence, our suggested buy levels were not triggered.

BTC/USD

The failure of the bulls to first break out of $12,172 and then hold the $9,500 levels is a negative sign. This shows that the bulls are losing strength.

If the BTC/USD pair breaks down of $8,800, it can fall to $7,850 and below this, to the February 06 lows of $6,075.04.

Currently, the bears have the upper hand. The trend will change only after the bulls break out of the moving averages and the channel.

Bad news for bitcoin miners as it’s no longer profitable to create the cryptocurrency

“Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team,” Fundstrat’s Thomas Lee said in a report Thursday.
“In some cases the miners may simply turn off the machines until the price comes back a bit,” said Shone Anstey, co-founder and president of Blockchain Intelligence Group. Right now, “it’s got to be getting to the point that some of them may be losing money.”
Miners’ earnings have roughly halved this month from December due to a surge of interest in bitcoin mining, as measured by hashrate, according to Charlie Hayter, CEO of industry data site CryptoCompare.
Bitcoin has dropped to a point where it’s not that profitable to produce, according to some estimates.

“Bitcoin currently trades essentially at the break-even cost of mining a bitcoin, currently at $8,038 based on a mining model developed by our data science team,” Fundstrat’s Thomas Lee said in a report Thursday.

Fundstrat’s model incorporates three factors: the cost of equipment, electricity and other overhead such as maintaining cooling facilities.

The cryptocurrency traded mildly lower near $8,000 Thursday, according to CoinDesk’s bitcoin price index, which tracks prices from four major global exchanges. Earlier, bitcoin hit a low of $7,676.52, its lowest since Feb. 8, according to CoinDesk data.

Bitcoin is created through an energy-intensive “mining” process that uses high computing power to solve a complex mathematical equation, proving an anonymous miner used the process the network agreed upon to build the blockchain record of transactions. Miners then get bitcoin in reward for successfully completing the equation.

David is passionate about learning cryptography, tech and the Internet. He has years of experience working at international investment projects. Growing interested in Blockchain and cryptocurrencies in late 2015, he joined Smartereum as an editor.

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