Bitcoin Falters Below $3,400 USD
Following suit with the generally downward direction of the cryptocurrency market, Bitcoin has set a new all-time low for 2018. Along with its price, the cryptocurrency market and Bitcoin alike have lost significant market capitalisation as well. The cryptocurrency market has also lost quite a large amount of community members because of recent events and developments in the cryptocurrency market and the bodies across the world trying to regulate it.
Bitcoin, in the early hours of today morning, lost another 11.6% and breached another low. In the early hours of today morning, Bitcoin slipped down to $3,306 USD. This fall has brought Bitcoin below its previously predicted support line. Which was $3,500 USD.
The Bitcoin market has also lost a large chunk of its market capitalisation. It has dropped by $4.8 billion in the past twenty-four hours and has lost a lot more over the course of the last couple of weeks.
These new lows the Bitcoin is breaching are a direct result of mass sell-offs and a general discontent in the cryptocurrency community regarding the happenings of the past couple of weeks.
Experts and analysts say that the cryptocurrency market’s downfall in something that began right after the bull of 2017 and then following that a lot of external factors have further increased the force with which the cryptocurrency market has crashed. Further, the cryptocurrency market has lost more than half of what it gained in the bull last year and has undone the change of the same.
One of the main contributing reasons for the fall of the cryptocurrency market is that the US tax year-ending is coming up and people that have held on to their cryptocurrencies for more than a year are being slapped with exorbitant capital gain taxes. The taxes are so high that the people either can’t afford it or don’t have enough cryptocurrency to pay it off. Which has led to a mass sell-off in the cryptocurrency market and has affected it dearly.
Another factor that was temporarily the cause of the cryptocurrency market’s fall was the BCH hash war that ensued. But that has now long since been settled and the extra strain on Bitcoin has been removed.
With that being said, the cryptocurrency market is said to experience this downward trend for at least another year. Experts and analysts from the community have proposed that the bear market will last up to as far as the second quarter of 2019.
Currently, Bitcoin is trading at $3,387 USD.
Must Read Why Bitcoin is Falling
Hitesh Malviya is the Founder of ItsBlockchain. He is one of the most early adopters of blockchain & cryptocurrency enthusiast in India. After being into space for a few years, he started IBC in 2016 to help other early adopters learn about the technology.
Before IBC, Hitesh has founded 4 companies in the cyber security & IT space.