Yesterday, as reported by smartereum.com, some experts in the financial market were certain that the price of Bitcoin hasn’t reached bottom because it is overvalued. In fact, the cryptocurrency was predicted to fall as low as $3000 before the end of the bear market. While most people believed this prediction might come to pass in a few weeks or months, Thanksgiving almost marked it out.
Bitcoin (BTC) Continues On A Downtrend
Ever since Bitcoin lost its relative volatility by falling below $6000, it has been unable to regain balance against the USD. The first largest cryptocurrency per market capitalization hit a low of $4,119 during Thanksgiving. Within a seven day period, BTC is down by 25% against the USD. This is rather discouraging since Bitcoin was preparing to reach its all time high during last year’s Thanksgiving. Keep in mind that between when the cryptocurrency market hit its peak and now, over $700 billion has been removed from its value.
SEE ALSO: Declines in the Value of Bitcoin (BTC) Might Be a Correction to Its Actual Value
Bitcoin (BTC) Price Today – BTC / USD
As expected, other cryptocurrencies within the top 20 followed Bitcoin’s lead falling drastically against the USD. Not one out of them were able to trade in green yesterday. XRP fell by 6%, and ETH fell by 7% over a 24 hour period. The total market capitalization fell to $138.6 billion within this same period. Prices of all cryptocurrencies are down by over 55% since last year’s holiday.
Why Are Cryptocurrencies Falling?
Why are cryptocurrencies falling? This is the big question that everyone has been trying to get answered. Different analysts have offered explanations for this scary fall in price. When the price of Bitcoin fell below $6000, many experts blamed the Bitcoin Cash fork war for it. This is because the war between the Bitcoin Cash community diverted fork power from BTC. This eventually affected the entire market.
The price dip below $6000 must have created a lot of panic among traders who saw this as an exit point. This triggered stop losses that increased the selling pressure in the market and led to more dips. As Bitcoin hit lower lows, more support levels were broken along the way.
Another possible reason why the price of cryptocurrency is falling would be the regulatory crackdown. Since the beginning of the year, the regulatory watchdogs have had their eyes on initial coin offerings and the broader cryptocurrency market. This is because of the number of scam projects that surfaced in the beginning of the year after the hike in the price of cryptocurrencies.
Recently, the SEC announced its first penalties against cryptocurrency exchange founders who were accused of operating unregistered securities exchanges. This week, as reported by smartereum.com, regulators started investigating the price hike that took place in December 2017 as they tried to figure out if the market was manipulated.
On another level, the global stock market is in red. Stocks and other securities aren’t doing well and it’s possible that investors are selling-off their most risky assets. Cryptocurrencies qualify as the digital assets with the highest risk at this time. Every trader is on edge and many short-term investors are cutting their losses by emptying their portfolios.
Bitcoin (BTC) Price Analysis
At the time of writing, Bitcoin (BTC) was trading at $4,347.36. It was struggling to recover against the USD by 1.45%. The trading volume over a 24 hour period is $4,267,474,512 and the market capitalization has fallen as low as $75,605,223,452.