bitcoin

Bitcoin Plunges to $5400: 12 Month Low, Market Sheds $25 Billion


Bitcoin hits a historic 12 month low of $5400. The pre-eminent cryptocurrency has cratered 11 percent just within the last four hours. The enormous drop in price appears to be driven by major Bitcoin and derivatives exchange BitMEX, representing 34 percent of 24-hour market volume.

The bear market continues. Following the hysteria experienced during the peak of trading in prices in January, Bitcoin, Ethereum, and many other major coins are quickly shedding market capitalization. The across the board price drops are following the plunge in Bitcoin’s price.

The duration of the current bear market is unprecedented for 2015-2018, spanning five continuous months since the rebound in May.

That said, the market has made some major recoveries during this year. In February and May, the market rebounded to a total market capitalization of $500 billion and $450 billion, and a minor rebound in late July at $300 billion.

None of these rebounds are even close to the market’s all-time high of $850 billion.

The End for Bitcoin?

Some claim that this is the result of the Bitcoin bubble hysteria experienced from 2016 through late 2017. These month over month losses could be more indicative of the value of the underlying technology.

To put things in perspective, this isn’t the first nor the worst bear market in Bitcoin’s history.

Year-Long Downtrend Punishes HODLers

In December of 2013, the market reached an all-time high of $13 billion, growing 8x (from $1.7 billion) in the span of two months. The market was then devastated over the next 10 months, shrinking below $3 billion and losing 77 percent percent of its value from all-time highs.

Read More   DMG Starts Operating 60MW Bitcoin Mine in British Columbia

For those looking hedge against the volatility of the market, exchanging crypto for a stable coin such as TrueUSD, USD Coin, or Tether can mitigate further losses. Once the market stabilizes it is then possible to repurchase crypto holdings.

Risk Reward

Many crypto die-hards appear unphased by the drop in prices. For many, this is just another lull in the grand scheme of things. Many on Reddit and Twitter are doubling down on HODL, quoting that to “experience the highs of crypto it is necessary to endure the lows.”

Many in the broader community have been skeptical of Bitcoin’s adoption, with some claiming that the phenomenon is a bubble. The continuous price drops may be indicative of such claims. Whatever happens, the market shall decide who’s right.

Bitcoin, currently ranked #1 by market cap, is down 10.4% over the past 24 hours. BTC has a market cap of $99.02B with a 24 hour volume of $7.07B.

Chart by CryptoCompare

Bitcoin is down 10.4% over the past 24 hours.

Cover Photo by Joel Filipe on Unsplash

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

Read More   Blockchain Capital's Spencer Bogart Explains This Week's Wild Bitcoin Price Swings - Forbes

Did you like this article? Join us.

Get blockchain news and crypto insights.

Join Us on Telegram





READ SOURCE

Leave a Reply

This website uses cookies. By continuing to use this site, you accept our use of cookies.