Last month was the arena for crypto-buyers to debate against each other to get the least possible profit. Due to the high volume of Bitcoin in the market, there is a general sharp fall in its value. It has experienced a drop of about 36%, let alone the other weaker currencies and the degree of the risk they have confronted. It can be assumed as its greatest unpredictable annual loss. The eye-catching occurrence is that about the same percentage can be observed in the rise of trading volumes among currencies since last seven months.
A brief look at currencies’ performance during some consecutive years can clearly show a dramatic drop from two years ago which is unfortunately more than 50% and plays the role of tocsin for the activists and businessmen who follow its process, since it can influence their whole business and might lead to the increase of sell-off in the crypto-market; although it cannot be assumed as the end of crypto life.
The same oscillation can be observed in Ether too. According to CoinDesk’s Ethereum Price Index (EPI), it has faced the lowest level since last two years. The drop which was more than 90% of its highest level in January is somehow similar to what taken place for Bitcoin.
What is observed about Bitcoin can be better understood when taking a look at Bitstamp exchange where you can see a drop of about 70 dollars just in a few minutes and even an unforeseen drop on Wednesday. In spite of all frequent drops in various types of cryptocurrencies, Bitcoin-cash, a Bitcoin subtype, was hopefully saved, 35% value rise is a good clue to confirm its rise. Bitcoin and Bitcoin-cash are the same in nature, but they are different regarding block size and people use either the former or the latter depending on necessity; although the eight-times block size capacity of Bitcoin-cash may intrigue users to work with it more.
The split taken place about Bitcoin and Bitcoin-cash can be considered as a strategy to increase the businessmen’s acclaim because Bitcoin-cash enjoys some features which might help them be more comfortable when working with cryptocurrencies. It might have occurred about Bitcoin Blockchain too, although lack of support on the part of people stopped it fearing that the present status of cryptocurrency might face instability.
A point implied in this fluctuating trend is that once you have an extremely high value in every currency, it might be preceded by an oversold condition.
This type of dramatic fall can be an impediment for the businessmen to continue, as capitalization decreased harshly in the field of all cryptocurrencies which has started from January, but, on the other hand, cryptocurrencies are still stable in their position, and it can be learned from the authorities’ behavior who are continuously attempting to enact rules in order to make them more legal and legitimate.
Sunday, December 16, 2018 9:32:00 AM