The massive fall of cryptocurrencies before the BitcoinCash hardfork event has been the major factor of discouragement in the crypto space today. It has hindered so many new investors and startups from investing in crypto currencies. Most people have lost trust in it. To make it worse, some analysts says “It will take a long time before Bitcoin recovers”.
After the hardfork, the price of Bitcoin and other cryptocurrencies has continued to fall. The fall in the price of Bitcoin went as low as the $3000 range only for it to spike up to $4000 range in the early days of last week. For some days now, Bitcoin has been trying to retain the $4000 price mark, even at that, it’s still observing some atoms of volatility. Throughout thanksgiving week, Bitcoin has been trapped at the $3000 range, managed to get up to $3900 this past Friday. Today the coin has gone below that and is now trading at $3,897.
Weslad’s Chart
A low profile analyst and cryptocurrency researcher by name Weslad, presented a chart which illustrated that Bitcoin will not reach its all time high of $20,000 anytime soon reason being that most retail traders has lost interest due to the current recession in the industry today. The financial lose incurred by these retailers have also affected their psychology thinking. Anyways, I wouldn’t blame them because no reasonable being will take the wiping off of $16,000 from the surface of his or her portfolio in less than a year, especially for the fact that such person is new to the industry and may not have gone through the history of the industry he or she have planned to join.
Generally, the industry is no longer interesting for the newbies. Crypto hypes be fading away, U.S. SEC be working seriously to keep crypto hype on a low-key. All these and so many other reasons are making it hard for retailers and newbies to return to the industry.
Boris Hristov, one of the researchers explained that Bitcoin can only regain legitimacy if institutional investors troop into the system. His words;
Potential candidates are macro funds, CTAs, alternative strategies and multi-strategy funds which have a combined $600bn AuM. Separately, commodity assets held by all hedge funds in 2017 were $300bn – ca. 10 percent of AuM. BTC could initially fall into this bucket.
Comments are off this post!