The cryptocurrency market are going through their second day of heavy losses with Bitcoin dropping below $10,000 and Ethereum (ETH) below $900, marking a price slide of over 30% for both assets this week.
Many industry figures see this as an opportunity to buy cheap crypto assets although there needs to be some caution as the local bottom of the market may still be ahead. However it must also be noted that we are only back to levels we saw one month ago:
Mati Greenspan, senior market analyst at eToro:
"The action we're seeing may seem dramatic but is really quite normal for this market. All in all, this drop has brought us back to the prices that were traded about a month ago for most cryptocurrencies."#bitcoin #cryptocurrency
— Joseph Young (@iamjosephyoung) January 17, 2018
Community and industry figures have reacted with mixed emotions to the downturn, which mimics behavior seen in January over the past three years.
BTC annual lows for the past 3 years:
2015 – Low was January 15th
2016 -Low was January 16th
2017 – Low was January 12th (15th was on a weekend)
2018 – January 16th?? (prediction)
Moral of the story: #HODL
— Cryptocratica (@cryptocratica) January 16, 2018
This Wednesday various publications are hinting at the possibility of Bitcoin’s alleged ‘bubble’ having burst. As usual there are various Bitcoin obituaries being prepared. You can read a few of them on 99 bitcoins.
Charles Hayter, chief executive of CryptoCompare, said that many expected the cryptocurrency market to decline.
“The market was very overheated and had significantly dislocated from trend. A large percentage of investors were expecting this correction and reversion to mean.”