Bitcoin price faces huge market correction- dips to $8,700 levels
Feb 02, 2018 Posted / 29818 Views
From some days now, Bitcoin prices are not able to surface back amidst negative news, FUDs, hacks and regulations. This week crypto-investors saw a huge dip in bitcoin prices, specifically, yesterday when it went through huge market correction dipping to below $9,000. As per the statistics provided by Coinmarketcap at the time of writing the price of Bitcoin stands at $8, 707.89.
This week bitcoin prices remained between $10,000 and $11,000 levels, while also dipping to $9,000 at one time and most of the cryptocurrency market was seen in red markings. This means that the investors are jumping to fiat currencies instead of swapping their bitcoins into altcoins.
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The total market capitalization at the time of writing remains $420 billion, which is huge down from the January highs of $830 billion. The contraction came after Indian media wrongfully interpreted that the government of India is going to completely ban cryptocurrencies, while the statement of the Indian Finance Minister read that the country is going to soon regulate the usage of cryptocurrencies for illicit usage.
Many critics are, however, saying that this correction is the end of bitcoin bubble. On the other hand, enthusiasts say that many coins saw unprecedented growth in the last six months as a result the market is just going through consolidation period which is natural with any currency.
It is noteworthy that on this very day last year, Bitcoin price was around $982. Many analysts say that the price of Bitcoin in the last month of 2017 saw an overheated growth because of the general sentiment in the market. There was mania that was running and crypto-watchers agree that any rational person knew that it will soon fall to steady levels. Still, looking at the huge price correction that came about in a day depicts that predicting for long-term prices of Bitcoin is not really possible.
There is a community of Bitcoin lovers which say that Bitcoin prices would bounce back soon. There is also skittishness around the subpoena for Bitfinex and growing concerns on Tether, which was designed with a motive to provide cryptocurrency peg to USD. It seems that every day there are new Ponzi schemes which are diminishing the original motive of Bitcoin creating more uncertainty and doubt over the credibility of Bitcoin.
The price of the Bitcoin is moving with the positive and negative news cycle. However, if we evaluate the credibility then the countries around the world who are throwing news of regulations are not yet able to identify how to exactly regulate it. The manner in which South Korean populace bounced back amidst the rumours of crypto-exchange itself depicts that most of the investors realize how huge it can be.
In some countries, though, India saw yesterday incorrect headlines inspired a sense of foreboding among cryptocurrency enthusiasts wondering which country will be next to come down hard. However, it may be good for cryptocurrencies to grow out of the current scam-laden turbulent era, a meticulous house cleaning is healthy.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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