Bitcoin plunges below $2000, what's going on?
Markets have been seeing red for some time now, however, Bitcoin had largely been mostly immune, until today.
Today Bitcoin fell below the $2,000 level for the first time in almost 2 months, 49 days to be exact.
The entire market value of the crypto space has fallen by almost 39% from the highs of around $115 billion in June down to $71 billion today.
This is the lowest total market cap for the space since May.
Basically we are seeing a correction of massive proportions.
What is going on?
Concern over the recent price action:
When polled, analysts that cover the space stated that the charts and momentum were showing something like this was coming for Bitcoin for some time now. The entire space has been drifting lower over the past couple weeks with Bitcoin sliding the least amount. Today, Bitcoin finally joined the party.
Market fatigue:
This was also mentioned as a possible cause by those same analysts. Whenever you have a market that has run up as quickly and as far as the crypto space has over the past couple months, it is due for some kind of correction at some point. When the buyers run out there is no one left to keep the run going, and then profit taking takes over.
The elephant in the room:
The above reasons are pretty generic and they certainly are possible causes for what is going on, but the main reason likely has to do with one thing...
August 1st.
A date that Bitcoin traders and investors know quite well.
That is the day we will find out if Bitcoin splits into 2 chains, 3 chains, or stays pretty much the same. The fact that it is completely unknown what might happen has traders and investors not wanting to hold Bitcoin through that date.
According to the founder of cryptocurrency exchange "The Rock Trading", Andrea Medri, it's exactly that:
"The selling could be due to people not being comfortable holding bitcoin because of the August 1st due date."
In fact some exchanges are even saying they won't process any Bitcoin transactions up to 2 days before August 1st because of the uncertainty over what might happen. Who wants to sit in something they are holding massive gains in through something like that?
Any time you have uncertainty, investors and traders tend to take chips (or coins) off the table.
(However, given all of that, where do you think we are on this chart?)
My thoughts:
I fully expect things to continue to be choppy up until that date with a downward bias. However, once we get passed August 1st and the world doesn't end, or something completely unexpected doesn't happen, I fully expect the entire space to rebound in a big way.
Which means...
@jrcornel is using this recent dip to buy any Bitcoin's he can under $2000, any Ether he can under $180, and any Steem he can under $1.
I think we will see much higher prices than this for all 3 later this year.
Stay safe my friends!
Sources:
http://www.coindesk.com/bitcoin-price-drops-near-2000-crypto-markets-fall-toward-70-billion/
Image Sources:
http://www.cnbc.com/2017/05/25/bitcoin-surges-10-percent-to-all-time-high-above-2700.html
http://www.coindesk.com/bitcoin-price-drops-near-2000-crypto-markets-fall-toward-70-billion/
Follow me: @jrcornel
Buy, buy, buy
We will get a lower price before aug 1st. But yea I'll be buying lower from here. I'd start buying more at $1650
do you think that the price decrease more then 1500 before august?
I think it'll drop to $1,000 or lower by August. Bitcoin is simply flawed: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/
Bitcoin is eiter going 1200$ or 3500$ by end of year.
https://steemit.com/bitcoin/@az-charts/bitcoin-yearly-monthly-weekly-and-daily-view
I think it will down upto 1500 $ and then will start their journey to rise !
This is where I am back in. $1500
Wait for currencies to dip to the bottom, whatever that scale might be as we approach august, then we should have more clear situation of what should we purchase. I'm highly interested in Steem price. Let's hope this doesn't hit the community standard and continuous progress.
What might that bottom look like in your opinion?
Bitcoin shouldn't go below 1600$. And I don't see any reason why should we except dooms's day in august. This is crypto black friday.
Totally agree. I think that after Aug 1 until the Segwitx2 conundrum is properly dealt with, we won't see any major price action.
Well stated!
Not dooms day but defiantly some confusion!
It will be just around aug 1st. I'd be guessing amount but def lower
Yeah Steem and EOS will most likely see huge growth!
I got a lil tiny bit of EOS, I hope to get more soon for sure!
Yeah now is a good time to get some more before the FOMO sets in 😄 The creator of Steemit and EOS is a genius!
Have you read the TOS? I won't be buying nothing thanks.
I'm not familiar with the acronym TOS.
Before I invested my money in any cryptocurrency, I took a look at the historic price chart, I saw that BTC had a very volatile history, so I knew how it could go. I only invested money I was willing to lose and I bought at many different moments. Most of the investments are still in high profit zone, some I bought in June are now in red. But I knew this could happen. I'm still buying some coins at this moment. I buy coins from the projects where I believe in. And like I said, I know this could be e very volatile ride... I don't sell these coins, even when it seems prices are going down, nope, I'm a holder, a long term investor, red days are buy opportunities to me! As long if you don't sell with losses, you didn't make any losses! Do your research and invest wisely what you're willing to lose!
You are doing it completely the right way dude. It is small individuals trying to actively trade this stuff that are getting killed.
Thanks for confirming my tactic, always nice to hear! I wish you the best of luck with your investments!1
but what's the long-term game plan for bitcoin? it has too many fundamental issues in my opinion: https://edwineconomics.com/2017/07/15/the-inconvenient-truth-about-bitcoin/
Just everyone please have ur wallet offline. ESP around aug
whats ESP?
sounds about right :)
I hope it goes back up soon, I feel like I'm the only person who's LOST money on Bitcoin :(
People are selling because people dont understand what a hard fork is, and why its necessary for the growth of bitcoin
People are buying high and selling low as usual...
really liked this article, the projected chart in particular :-) (although there were bubbles before the $100 range of course)
If you believe in the long term value, just buy little bits on any dip!
I bought today @ 0,95
One reason behind Bitcoin crashing is shutdown of the biggest dark market site - Alphabay. In case you didn't know, it was 3 times larger than Silk Road. Huge amounts of money, plus it wasn't just bitcoin. They supported BTC,ETH,XMR and planned to introduce Zcash as well.
One would hope the downwards momentum in price stops soon!
Good point. That is probably a big part of it as well. Thanks for the heads up!
Dam it! where will I get my meth and crack from now!
That dude on the corner!
Does he take Bitcoin? :P