The price of bitcoin started to plunge Thursday when it fell below $ 6,000, and since then its slide has continued. It fell below the $ 5000 limit, the lowest level in a year: Monday at 2:10 pm EST, dropping below $ 4,800. The last time bitcoin fell so low it was in October 2017. It resumed a little later in the day, and was trading at $ 4,998 at 10:12 pm , EST, as traced from tradingview.
While bitcoin has seen a decline of over 11 percent in 24 hours of trading, the bitcoin money – which created uncertainty around the hard fork – has dropped by 40 percent over the same time. Other currencies that had a double-digit drop (more than 10 percent) in 24 hours included ethereum, cardan and monero.
The speculation on the reasons behind the fall in prices include various reasons, such as regulatory control, the bitcoin cash hard fork, the reduction of the market interest for cryptocurrencies and a technical breakout. Some people in the the cryptic community believes this fall is associated with the sale of panic and is now, in fact, the best time to buy bitcoins. For those already invested, they should keep their businesses and wait for prices to rise.
Jeremy Gardner, a cryptocurrency entrepreneur and self-taught millionaire through his early bitcoin investments, has confidence in cryptographic technology.
"Predicting the short-term price of bitcoin is an exercise in futility, sentiment-oriented markets and sentiment can change on a whim, the important direction is technology, which is clearly forward," said Gardner at International Business Times.
Daniel Schwartzkopff, CEO of the cryptocurrency investment firm Invictus Capital, said the reason for the fall could be the continuum cash bitcoin "civil war" which caused extensive damage to the market.
"Both groups [Roger Ver and Bitmain’s bitcoin cash ABC and Craig Wright and Calvin Ayre’s bitcoin cash SV chain] they have big bitcoin war coffers and they are selling it on the market to subsidize the unsustainable extraction of their individual chains – that is, the expenses currently far outweigh the revenues made by pulling out their new chains. The hash rate was rented, paid with the bitcoin sold, in order to secure the longest chain and be declared the winner of the original ticker cash ticker symbol, "Schwartzkopff told IBT.
The uncertainty behind this could have caused panic among investors. The CEO also predicted that as long as the uncertainty continues, the price of the bitcoin would fall further. "The price of bitcoin is not historically supported by levels lower than the cost of mining," added Schwartzkopff.
Speaking of theories that could have triggered the big sale, David Thomas, director and co-founder of GlobalBlock, told the IBT: "The bitcoin had been trading in an increasingly narrow band for an extended period of time and was at a certain point it is inevitable that a Bitcoin has spent most of 2018 in stasis and critics are starting to question the general interest in the sector: while the year has progressed, volumes have declined and some support that the adoption of cryptocurrencies has stopped ".
Analysts believe there is more depression in cryptocurrency prices this week, which will be important for the crypto community and, more specifically, for bitcoins.
"Simply speaking, the way and the way Bitcoin has moved in its great rally last year means that it has quickly eclipsed its current market price and even from May 2017 it is easy to forget, but the bitcoin was trading at $ 600 and below is not a lot of data to look at from around $ 600 and upward as happened in a relatively quick period of time.If you pushed it, you could say that $ 3,700 and $ 1,900 could potentially be levels to note, but other than that we will just have to wait and see, "added Thomas.