Bitcoin has dipped drastically in the past few hours and fallen from $4,900 to $4,280. This is the first time this year that the price of BTC has dropped below the $4,300 mark. Within the past 3 days, BTC has dropped a ground breaking 32 percent in price causing a pressure to sellers.
South Korea which has been the third largest cryptocurrency exchange market throughout the year has faced a major drop in the value of Bithumb, Upbit and Korbit may not hold its position for much longer. If BTC is not able to recover to at least $4,000 in the next few days, there is a great possibility that trading activity in the worldwide cryptocurrency exchange market will suffer much more and there will be more loss.
A cryptocurrency trader known as the Crypto Dog stated “The bears aren’t even pushing, $BTC is just free-falling. Very weak dump, imagine what it looks like when the volume comes in. A short-term reversal could happen at any moment – shorting with high leverage is a terrible idea. However, if you are trying to knife catch, be patient. No one should be in a rush to long this.”
According to Rohit Kulkarni, managing director of private investment research at SharePost said “We believe that there are three likely catalysts that could result in a crypto market turnaround in the next six months. These are: A greater clarity from regulators which could embolden the market; A select group of blockchain startups that have completed token offerings in the past year finally announcing innovative commercial products; And the piling up of institutional capital triggering investors to call the bottom of the market.”
Some experts believe that this is due to the “hardfork” of bitcoin cash. This hardfork is when there is a complete change in the protocol of the blockchain technology that makes previous transactions or blocks that were invalid become valid or vice versa. This then requires an upgrade by all users. Donald Bullers, North American representative for the blockchain firm Elastos said, “It’s safe to say that bitcoin cash’s upcoming hard fork stirring uncertainty among crypto investors, and forecasters across crypto and traditional markets alike have predicted a prolonged bear market heading into 2019.”
Since bitcoin cash was one of the main cryptocurrencies it cause bitcoin to experience some of the biggest loses as well. “In the first week of November, while the markets for the main large cryptos were flat, bitcoin cash was the only major cryptocurrency shooting up,” said Angel Versetti, CEO of Ambrosus, firm that uses blockchain technology.