- Bitcoin price fell by a whopping 15.2% after weeks of soaring past the $50,000 mark.
- Other cryptos, too, saw a similar decline ostensibly due to the negative impact of Bitcoin.
- Several crypto analysts vindicated as their predictions of a steep slowdown in BTC prices became true.
Like all good things which come to an end, the share market price of Bitcoin price a steep decline and fell below the $50,000 mark for the first time since Feb 16 after it touched a life-time high of $58,012.09 on Feb 22. Speculations of a future decline in prices have gripped investors, which leads several experts to believe what Bitcoin experienced was a classic market bubble.
The Transitory Situation or a Continued Phenomenon?
High profile backing, including MicroStrategy’s CEO Michael Saylor and investments such as Tesla’s $1.5 billion infusions, led to a phenomenal rise in its popularity. However, recent tweet from Tesla CEO Elon Musk seems to be attributed to the current downward trend. The Chief Executive of the world’s largest crypto exchange, Binance, was quick to allay fears and assured that though cryptos suffered some losses, it was still at unprecedented and historical levels.
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THE CHIEF TECHNICAL OFFICER AT BITFINEX, PAOLO ADRONIO, IN AN EXCLUSIVE REPORT, STATED
, “We may be seeing some price fluctuations that can be expected in a nascent space. Today’s price movement may galvanize Bitcoin’s many critics, including those who recently dismissed the leading cryptocurrency as an economic sideshow”, adding that “such criticism misses the point and the profound impact it is starting to have. ”
“Today’s drop may seem to be a correction in BTC while a sharp dip in Ethereum’s price has put the focus upon increasing transaction fees in ETH”,
HE SAID, WHICH REINFORCES THE FACT THAT THESE DROPS HAVE BEEN PREDICTED FOR QUITE A WHILE.
Impact On The Industry:
Though prices have come down, it does not seem as though there would be a lasting impact on the dependent industries. When asked about the impact on the cryptocurrency industry, Mr Adronio stated,
“For many of the battle-tested exchanges that have weathered the market fluctuations, volatility isn’t new and is to be expected in a young market. For many in the industry, development and deployment are a priority and price movements are more of a sideshow”.
It is anticipated that exchanges, including Bitfinex, would brush off this relatively small decline in the highly volatile Bitcoin history as long as the trend doesn’t continue. As experts have suggested, the worst-case scenario would be the crashing of BTC to a $30,000 mark. Altcoins such as XRP, LiteCoins, DogeCoins and UNISwap have encountered losses of upto 20-30 per cent as their popularity is directly dependent on Bitcoin’s stock price. Only time would tell us if Bitcoin would continue this trend or rise again on the back of strong support from crypto-enthusiasts.
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