The price of cryptocurrency has been dropping steadily for the past few months. Some analysts are predicting that a complete crash is inevitable, while others say that this is just the market cooling off after an explosive year.
As with all things cryptocurrency related, it’s hard to tell which side is right. However, the market has been very volatile in the last few months and prices have been dropping across the board. It’s worth taking a look at what’s going on and what might happen next.
The first thing you need to know about cryptocurrency prices is that they’re not set by any central authority like a government or bank. Instead, they’re determined by the people who use them on a daily basis: miners and investors. Miners use specialized computers to solve complex mathematical problems and verify transactions on the blockchain (the public ledger of all cryptocurrency transactions). In return for performing this service, they get paid in bitcoin or other cryptocurrencies. Investors buy and sell bitcoin and other cryptocurrencies on online exchanges like Coinbase or Kraken. These exchanges set their own prices based on supply and demand for each currency in their marketplace.
The second thing you need to know about cryptocurrency prices is that they can go down as well as up. When there’s lots of demand for a certain currency (like there was
The price of cryptocurrency has been a hot topic over recent weeks. In part, as the value dropped by an alarming 50% in just one week.
There are many reasons as to why the market has dropped, and there is no one single explanation. One factor could be due to the South Korean government’s announcement that they are considering closing down the local cryptocurrency exchanges. A government official said that: “There is no intention to ban or suppress cryptocurrency.” However, it seems that the comment was enough to spook investors around the world.
As well as this, Facebook announced that they will be banning all ads related to cryptocurrency. This comes after their discovery of several misleading adverts running on their site, encouraging users to invest in such things as binary options trading and ICOs (Initial Coin Offerings).
Another issue is that of hackers attacking exchanges and stealing millions of dollars worth of cryptocurrencies. The most well known example being Japanese exchange Coincheck who were attacked earlier this year, having 523 million NEM coins stolen from them – worth around $500 million at today’s prices – which also led to a drop in the market price.
One thing is for certain, the market is volatile and unpredictable, and it may take time before stabilising again.
The price of most cryptocurrencies has been dropping over the past few months. Many are wondering when the market will bounce back and if it will ever reach all-time highs again.
Of course, no one can predict the future, but there are some signs that indicate crypto prices will eventually recover.
For example, the number of people searching for “cryptocurrency” has been steadily rising since March 2018. That means more people are interested in crypto than before, which could indicate a bright future for the industry.
Additionally, there’s evidence to suggest that many of the institutional investors who have been putting money into crypto over the past year are holding onto their investments. So even though the price of crypto is down, it may not stay that way for long.
A few weeks ago, the prices of many cryptocurrencies were dropping. I wrote an article about it, and I was surprised by the response. Several people wrote to me privately (and some publicly), saying they were in a panic over their investments. Some had even begun selling their coins.
But, as I said back then, if you’re panicking over a drop of 50% or more in your cryptocurrency prices, you should probably examine your investment strategy.
What I didn’t know then was that this price drop was only the beginning of a larger trend. In the past few days, we’ve seen almost all cryptocurrencies fall by a huge margin.
The price of Bitcoin has fallen from nearly $20,000 at the beginning of 2018 to just over $6,000 today. Ethereum is down from around $1,400 to less than $200. Ripple is down from around $3 to less than $0.30. And many other coins have experienced similar drops in value.
Why are these prices dropping? There are several possible reasons:
Government regulations – A number of countries have banned cryptocurrency trading, including China and South Korea. These bans have caused a lot of uncertainty among investors and made them reluctant to invest in cryptocurrencies.
Market manipulation – Many people
The price of Bitcoin and other cryptocurrencies are highly volatile. In the past three months alone, the price of Bitcoin dropped by more than 40 percent amid speculation that the bubble has finally burst for the world’s largest cryptocurrency.
The price fluctuation of Bitcoin and other cryptocurrencies is something that has been talked about a lot in the industry, as it has a direct effect on how much people are going to invest in them.
There is no question that the price of Bitcoin has been going down for the past few months. However, there is also no question that there are many people who think the price of Bitcoin will go up in the future.
The problem with predicting what will happen with cryptocurrency prices is that there are so many factors that can affect them. These include things like regulation, mining costs, demand, supply and more. It is also difficult to know when they will stop going down or start going up again.
It’s been a tough week for cryptocurrencies. The price of bitcoin—the world’s most popular digital currency—fell below $6,000 for the first time since November, according to data from industry site CoinDesk.
Other major cryptocurrencies also fell in value significantly. Ethereum and Ripple, which are the second and third largest cryptocurrencies by market capitalization, were down 11% and 20%, respectively, over the past 24 hours as of 3:40 p.m. Eastern Standard Time on Friday.
The price of bitcoin has fallen more than 52% so far this year. Other top cryptocurrencies have fared even worse: Ethereum is down 66% and Ripple has dropped more than 80% this year, according to CoinMarketCap.
The cryptocurrency market as a whole is also down about 60% so far this year, according to CoinMarketCap, leaving investors spooked and wondering if the bottom will fall out completely or if there will be a rebound in prices at some point in 2018.
The good news is that experts say that cryptocurrency prices could rebound after they hit bottom—which may be very soon—and that investors should not give up on digital currencies entirely.
This has been a rough year for cryptocurrency investors. Bitcoin, which is the biggest cryptocurrency, lost more than $3,000 of its value in just 30 minutes on Wednesday and has dropped more than 70% since December.
The sharp decline comes amid a broader crash in the cryptocurrency markets. More than $600 billion has been wiped from their combined value since January.
“This is not the first time we’ve seen a drop like this,” says Jacob Donnelly, a reporter for CoinDesk. He points to bitcoin’s rally on Dec. 17, when it rose above $19,000 before crashing below $14,000 the next day — a stunning 25% plunge.
So what’s behind the sudden drop? It’s hard to say exactly, but there are several factors at play. One of them is likely to be South Korea, where authorities recently introduced several measures aimed at cracking down on cryptocurrencies.
“South Korea accounts for about 20% of all global bitcoin trading volume,” says Donnelly. “They’ve also started banning some types of anonymous trading accounts.”
Another factor could be increased regulatory scrutiny in the U.S., where the Securities and Exchange Commission said last month that it would crack down on “potentially unlawful” online platforms trading digital assets.