[ad_1]
If this dive is an indicator of how things could happen, then Bitcoin could be on a continuous course.
Prices for Bitcoin and other cryptocurrencies will weaken, with Bitcoin hovering around $ US 1,500, Bloomberg Intelligence analyst Mike McGlone said in a Wednesday note.
This would result in a further 60% drop in the Bitcoin price compared to the current level. Bitcoin has dropped nearly 80% from its record high of December 2017 when it hit $ US 19.511.
"There is little to prevent the faded bitcoin prices from reaching the continuous average of $ US1,500," wrote McGlone. A rush to exits among investors seems to be taking place, he said, attributing it to the Bitcoin cash division and sales related to year-end tax purposes, among other things.
Cryptocurrencies have seen a massive sell-off in the last month, with the biggest tokens losing billions in market value since Bitcoin Cash bifurcated in November. This happened when two software development factions failed to agree on a way to update the offshoot of the original Bitcoin, leading to an arms race.
Loading
"We are at a classic psychological stage where the market is reversing the frenzy of 2017," said McGlone in an interview.
"The blow has been a key factor that has signaled that technology is too nascent." You had these menacing characters who threatened to destroy each other and the institutions said "It could be better if we take it off for a while." ".
The Securities and Exchange Commission also reduced space cryptography by imposing fines on two companies last month that did not record their first money bids as securities. And the head of the SEC said last week that concern over the lack of investor protection makes it unlikely that the agency will approve a Bitcoin exchange-traded fund at any time, something that the Bitcoin bulls have plagued for the whole time. # 39; year.
Bitcoin fell by more than 40% in the last month and November marked its largest monthly decline in over seven years. XRP, the cryptocurrency also known as Ripple, is down nearly 30% in the last month.
The lower prices, however, indicate reductions in speculative excesses and help reduce volatility, said McGlone. "But the trend of this year is clearly sustainable – it's a positive trend," he said.
"The trend is a reduction in prices, lower volatility, a reduction in speculation and a preponderance of stable currencies," he said, referring to tokens designed to minimize price volatility. Until then, cryptocurrencies must find a basis to see more stability and "we are not yet close to this base".
Bloomberg
The most seen in the business world
Loading
