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After a period of general weakness in the cryptocurrency markets in recent days, the bitcoin has fallen to its lows of 2018, preceding the massifs.
Despite the current bloodbath in the cryptography markets, one analyst believes cryptocurrencies will become a safe haven for investments as stock markets are subject to increasing instability.
At the time of writing, Bitcoin traded 4.5% at its current price of $ 3,650, just a hair above the 2018 low of around $ 3,600. As this price level proved to be a support level when it was first touched at the end of November, it will be interesting to see how the price of Bitcoin responds to this region in the next few hours.
Related reading: Study: Pump and Dump patterns have negligible effects on cryptographic markets
Bitcoin instability leads to the Altcoin Market bloodbath
The current Bitcoin price action has caused considerable success in the altcoin markets, with more encrypted exchanges declining by 10% or more.
At the time of publication, Bitcoin Cash (BCH) is the worst performing alternative and currently trades over 15% at the current price of $ 115, setting a new historical low around this price.
BCH is currently trading down nearly 82% from the recent highs of $ 630, which were set in the weeks before the "hard fork" event in mid-November. This event – in addition to current market conditions – is probably the main factor contributing to the downward spiral of BCH, as it has reduced investor confidence and divided the community into a civil war regarding the original Bitcoin Cash and the hard fork version – Bitcoin SV.
Ethereum has also set a new low of 2018 and is currently going down more than 7% to the current price of $ 97.5. Yesterday, ETH dropped briefly to around $ 100, but quickly rebounded to $ 104. Despite this, ETH was unable to support the $ 100 support level and has yet to set a new level of support.
XRP is currently monitoring Bitcoin's performance fairly closely and trades 4.4% at its current price of $ 0.327. Although 4% is not a small loss, XRP is one of today's best performing altcoins.
Although the recent price action is demoralizing to investors, an industry insider expects cryptocurrencies to become a safe haven for equity investors in 2019, which may experience greater turbulence in equity markets amid growing concerns about a trade war between the United States and China and to increase interest rates from the Federal Reserve.
Ian McLeod of Thomas Crown Art, a blockchain-based company that uses smart contracts for works of art, spoke with MarketWatch about this theory, saying:
"There is a growing list of development factors to be considered for 2019. These include strong trade tensions, rising interest rates, political uncertainties, including Brexit, and compliant financial markets. In this context, we can expect cryptocurrencies to be increasingly seen as "safe havens" for investors in 2019 and beyond ".
If Bitcoin holds $ 3,600 or less as a support level, it will probably set the tone for how the markets go for the rest of the week.
Shutterstock foreground image.
