Since the beginning of 2018, there has been a trend, accompanied by a fall in cryptocurrency rates and a decrease in market capitalization. Experts talk about many fundamental reasons that influenced the current state in which all digital coins are today. But what should ordinary citizens and investors do, who believe and invest serious money in the acquisition of this asset, how long will Bitcoin fall?
Reasons for depreciation
No sooner had the crypto-currency market reacted to the news from South Korea, which talked about the ban on exchange operations related to digital coins, as new alarming messages appeared. This time, India, seeing the fall in the rate of Bitcoin, decided to outlaw the cryptocurrency in its country.
The government has been watching from the sidelines for many years and has not made harsh statements about Bitcoin, but recent events have forced serious and drastic measures to be taken. Due to the loss of confidence in virtual assets, as well as the existence of a large number of cases related to illegal transactions or money laundering, the Indian authorities stated that the cryptocurrency will not be a payment instrument in the state. Trading in Bitcoins and other digital coins will be prohibited.
In addition, Facebook added fuel to the fire by banning cryptocurrency ads on its network. The management considered that the promotion of various ICOs is associated with huge risks for users. According to statistics, more than 90% of new projects are fraudulent, the main task of which is to receive cash deposits from future customers and disappear unnoticed, taking the investments. Therefore, there is no point in advertising such activities.
The cryptocurrency rate was affected by the news regarding the Coincheck exchange, where hackers hacked into the system and stole a total of $ 500 million. The US government is no longer so loyal about Bitcoin. A high-profile investigation has begun regarding the Bitfinex trading platform, the country is going to fight anonymous transactions and impose taxes received from virtual activities.
Where is the limit of the fall of Bitcoin?
Based on data from the CoinDesk exchange, on Monday February 5, 2018, the Bitcoin exchange rate fell by more than 15%, showing the lowest result over the past three months. Thus, the cryptocurrency lost more than $1.2 thousand per day (minus 15.4%).
Reuters notes that Bitcoin has been falling for the sixth trading session in a row. The cryptocurrency, which has risen in price by 1300% over the past year and reached about $20,000 in December, has already lost more than half of this value in 2018.
Experts predict a further fall in cryptocurrencies. On February 16, Chinese New Year will be celebrated. Most Asian users and large investors will want to withdraw Bitcoin into fiat money before the holidays in order to buy various gifts and souvenirs dedicated to the upcoming event. In this regard, the market capitalization may falter and drop significantly relative to current positions. As a result, the cost of Bitcoin will drop to November 2017 levels.
Bitcoin fall chart
The minimum exchange rate of Bitcoin according to analysts
Financial analysts believe that 1 BTC will break through the $5,000-6,000 mark, after which rapid growth and strengthening of positions in the global economy will begin in the spring of 2018. Therefore, you should not sell Bitcoin today and transfer all funds to the traditional currency, you need to wait for the correction to end and the market to recover. By keeping the coin in a cold wallet, one can make a profit in the long run and avoid the risk of bitcoin theft.
“We assume that the decline will continue, breaking the next mark of $5 thousand per coin," Miles Eakers, chief market analyst at Centtrip, quoted Reuters as saying.
According to the Coinmarketcap portal, other popular cryptocurrencies are also getting cheaper – Ethereum (minus 19%) and Ripple (minus 14%).
Negative news and news haunted Bitcoin both at the time of growth and during the period of a sharp fall. You need to understand that the cryptocurrency market will not disappear in any case, the troubles are temporary and have a short duration. After all problems are resolved, the digital asset, as a rule, reaches new all-time highs.