Launched in 2009 Bitcoin is the first ever cryptocurrency. A product of hard work and great philosophy, Bitcoin has inspired a generation to become passionate about cryptocurrencies.
That is why it has always maintained superiority and dominance over all other cryptocurrencies. According to Coinmarketcap Bitcoin has $21,879,147,959 in market cap.
Bitcoin had a great price rally throughout 2017. It reached a very high price of $3000 per BTC in August. This event attracted the mainstream media as they began to write about Bitcoin.
That is how Bitcoin and cryptocurrencies were able to reach the masses. Since August Bitcoin never looked back as it continued to climb higher and higher.
On 19th December Bitcoin reached an all-time high price of over $19,000.
While the year ended on a positive note for Bitcoin, this has not been the case in this new year. From the beginning of 2018 Bitcoin showed signs of a slowdown and ultimately started to free fall.
Currently, Bitcoin is trading at about $10,000 USD. So the price has almost been halved since December 2017.
WHY WAS BITCOIN FALLING?
This recent fall of Bitcoin has been so devastating that even veterans traders are in doubt. Everyone in the crypto space is waiting eagerly for a positive sign.
So questions like “Why is was bitcoin falling?” and “When will it recover?” have become the greeting between cryptocurrency enthusiasts. And it is not the case with Bitcoin only, popular cryptocurrencies like Ripple, IOTA, Ethereum are also following the trend.
To be honest, nobody knows why Bitcoin is falling so hard. But I have tried my best to come up with a few possible reasons.
TURMOIL IN THE CRYPTOCURRENCY SPACE IN THE FAR EAST
Unease among cryptocurrency investors from Asia is growing even further. The South Korean authorities have completely hampered the cryptocurrency trades in the country.
They have cracked down cryptocurrency exchanges. The South Korean authorities are also planning to impose strict regulations on cryptocurrency trading.
They have proposed various regulations like banning anonymous trading accounts, banning underage cryptocurrency trading, banning foreigners from trading cryptocurrencies in their country and more.
The South Korean government is even thinking of killing the whole cryptocurrency ecosystem in their country.
This is very alarming news as 50% of the global Bitcoin trade is done against the South Korean Won. Cryptocurrency investors in the country are protesting against the government’s moves.
They have started various petitions and continuously trying to bring back normalcy in crypto trading.
The Chinese government is also planning to crack down on Bitcoin trading. Chinese mining farms control the majority of Bitcoin mining network. So this behaviour of the Chinese government can ruin the Bitcoin ecosystem completely.
I believe these events are most probably the main reasons behind Bitcoin’s fall.
On Tuesday Chinese authorities reiterated their commitment to cracking down on bitcoin, and South Korean regulators are pushing forward a bill that will put a stop to crypto trading in Korea.
– published on express.co.uk
During the Bitcoin’s price rally it attracted a lot of new investors due to mainstream media’s attention. Most of these investors don’t know a thing about Bitcoin let alone cryptocurrencies.
They jumped on the bandwagon to just reap the profits. And when Bitcoin showed signs of negative movement they all started to sell their funds. This may be another reason behind Bitcoin’s recent price drop.
WORK OF PUPPETEERS
It is no doubt that a handful of rich investors control the whole Bitcoin ecosystem. According to an article published on Bloomberg, a mere number of 1000 investors hold 40 per cent of all Bitcoin. Often termed as the whales, these investors can pull the strings and we all will dance.
Also, having a pseudonymous founder doesn’t help Bitcoin’s case at all. So if these anonymous whales start selling their funds we are destined to feel the waves.
BITCOIN MAY JUST BE ANOTHER BUBBLE
Bitcoin’s pseudonymous founder, constant volatility, and overall behaviour is enough to raise the eyebrows of a veteran market analyst. As these are the signs of a classic bubble. So if, in the end, Bitcoin happens to be a bubble it is doomed to fall.
Read this detailed article on Cointelegraph regarding how Bitcoin may be a bubble.
WILL BITCOIN EVER RECOVER?
We are currently observing that we are recovering strong.
It is very hard to confirm whether Bitcoin will rise or fall at the moment. According to expert cryptoanalyst, Mr Rakesh Updhyay Bitcoin’s price may fall even lower.
In his recent analysis, he states “We believe that the bulls will attempt to pull back from the current levels, but the bounce will not sustain and the BTC/USD pair will crack the $10,704.99 level and fall to $8,000.”
But cryptocurrency experts assure that if somehow the price reaches back up to $15,000 USD then this bearish run won’t continue.
Also, market history suggests that every time Bitcoin has experienced such a sharp fall, it has also gone through an even sharper climb. So let’s hope this also happens this time too.
WHICH CRYPTOCURRENCIES CAN YOU INVEST IN RIGHT NOW?
Now that Bitcoin is falling so sharply investors are thinking of switching to other cryptocurrencies. Mostly to minimize their losses.
The best alternatives for BTC are – Ethereum, Litecoin, BCH & BNB.
Which I believe is a wise move to execute right now. But if you see the current crypto market, it is quite evident that most cryptocurrencies are falling too.
Notice the word “most”? Because not all cryptocurrencies are falling. Some cryptocurrencies continue to rise even in this turmoil. So, let’s see analyze our options now.
In my opinion, the best altcoin to invest in right now is Bitcoin Diamond. It is showing somewhat positive movement against the falling Bitcoin. So you can try investing in BCD for the moment to reap some profits.
But please do it at your own risk because it right now the market is very unstable. So crypto that is profitable right now, may fall sharply tomorrow.
I hope I was able to provide some valuable information in this article. It is extremely unfortunate that we had to experience such a devastating event. I am seeing a lot of investors who have already lost thousands of dollars. What is even more unfortunate is that some of them even took loans to invest in cryptocurrency.
That is why I always preach against such a foolish step.
Cryptocurrencies are extremely volatile. Because most of them do not depend on any physical entities. So their prices are merely the result of supply and demand. That is why I always tell people to be extremely careful when dealing with cryptocurrencies.
And only invest an amount that you can afford losing.
I guess this devastating fall will teach people to trade carefully and responsibly. And I hope to see Bitcoin and other cryptocurrencies to rise up again.