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The Bitcoin price plunge

Alan Muli

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Bitcoin

Recent times have seen Bitcoin investors incur significant losses. This is attributed to the plunge in the market price of the once lucrative cryptocurrency guru. Since 2017, Bitcoin has been experiencing a downward dive in its value. The year saw Bitcoin reach its lowest ever value and this was a blow to cryptocurrency investors as massive losses were incurred. A year earlier, Bitcoin had witnessed a massive surge since people from all corners of the globe were investing in the Bitcoin.

Technical charts indicate that Bitcoin’s downside break of the recent narrow trading could have opened the doors for a drop to key support at $6,100. Bitcoin was, for the last week and a half, sidelined above $6,400. Currently, the cryptocurrency has fallen to $6,200 and this has confirmed a range breakdown.

The Bitcoin Bubble

December 2017 witnessed a peak in the Bitcoin trading rate. It was valued at over $28,168, the highest it had ever been. However, the price has steadily dropped to $8,790 and as the days go by the Bitcoin story continues to look like a fall from grace to grass. Bitcoin’s future looks bleak and more people are coming to terms with it and some are of the opinion that the cryptocurrency will not make a recovery.

In 2013, Bitcoin traded at slightly over $9000 and people who had invested in it then are not as hard hit as their counterparts who bought the cryptocurrency recently. At that time, the value of the coin was rising exponentially and was at some point deemed, the greatest investment of all time. So palpable was the optimism surrounding the cryptocurrency. Economists had gone to the extent of predicting its long-term value. Experts opined that the value of the Bitcoin would hit $250,000 by 2022. This led to a massive increase in investment and thus the boom witnessed in the years preceding the fall.

The burst of the Bitcoin bubble was a tragic loss to investors and economies as a whole. More losses are expected to come during this prolonged period of extremely low volatility. Bitcoin price is dropping at a rate of approximately 1.8% on a 24-hour basis. The bitcoin-to-dollar exchange rate dips by an average of one percent a day. Even the most optimistic experts say that it is hard to see a comeback in the value of the cryptocurrency any time soon.

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