The cryptocurrency market is experiencing a downturn that forces us to evaluate what has been happening in recent days. Although throughout this year 2018 the optimistic opinions have proliferated in relation to the prices of Bitcoin, taking as a point of comparison and justification the prices of 2017 and the relative stability maintained during 2018, at the close of this day, November 14, 2018 we find one of the most significant drops in the price of the main cryptocurrency, with a price of USD $ 5,582.90 at the time of writing this note.
The fall in prices has not only touched bitcoin, the vast majority of the altcoins, many of which have maintained a quite positive price development in previous days, even previous weeks, have also been severely affected by the significant drop in prices today, some with falls that approach 20%. This given in this way can not be considered as “normal”.
So, what is the cryptocurrency market showing today?
The markets obey very pragmatic realities. Their figures only reflect what happens at a given moment. The case of Bitcoin should be observed as an important reference paradigm. In the current moments when we see the trading volumes of Bitcoin we can see that not only has been going through a low volatility that seems to want to show a stability if we see the prices as bands between high and low limit in these months, but also that is having a very low volume, in fact the lowest so far in 2018.
Talk about this reality when with the fall of today the price of Bitcoin came to be below its previously established support level of $ 6,200, it is mandatory if you want to understand what is happening.
We can start by asking ourselves if interest in cryptography enthusiasts is falling, or if there are fears, or if restrictive regulations towards cryptography in markets like the US and China are beginning to have a specific effect, or if trust in projects of cryptography is declining. We can ask many things.
Unfortunately there is a bit of everything, with projects that launched their ICOs and have turned out to be Scam or have failed very early in their implementation, as well as the terrible security vulnerabilities that have been experienced in many exchanges recently, all adding up to a climate that can be decisively thinned in the next few hours.
At times when large mining equipment manufacturers such as Bitmain and Bitfury have advanced in their new products, this general decline in bitcoin prices, and thus, in most altcoins, is puzzling.
The cryptographic community although very young in terms of time, is very active and also very sensitive. And the speculations are the main dish of a day to day in which the markets of the cryptography are nourished.
We are witnessing a moment of strong encounter with the reality of a significant drop in prices, where it is clear that most retail investors are not putting money in Bitcoin.
Although Bitcoin was created as an unbanked mean of exchange between peers, and therefore designed for daily use, it has now been perceived more as a digital asset of value, and many bet more to maintain them, than to place them in circulation.
However there can be many factors that can affect the price of bitcoin or any other cryptocurrency, and these falls are something natural that can happen, especially now when the market is flooded with more investors than ever before in the history of the cryptography.
How could we call this phenomenon of falling prices? We are in moments of days close to blackfriday, will it be that also without intending it, Bitcoin and the main cryptocurrencies will have their Blackfriday? If it is not observed an immediate positive action in the price of Bitcoin on the next hours is naturally due to the lack of interest of the retailers and before that reality we will all have much to learn.