Bitcoin Slips to $7,840 as Sell Volumes Intensify, Cryptocurrency Market Slumps

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The valuation of the cryptocurrency market, which hovered near the $470 billion mark merely two weeks ago, has declined to $313 billion, as major cryptocurrencies including bitcoin fell in value.

Bitcoin Slumps

Over the past 24 hours, the price of bitcoin fell from $8,600 to $7,840, by nearly $800. While trading volumes of most major cryptocurrencies across leading exchanges remain low overall, bitcoin’s daily trading volume has been relatively low, with sell volumes intensifying on exchanges like Bitfinex and Bithumb.

Yesterday, on March 16, CCN reported that although many analysts within the cryptocurrency sector and traditional finance industry unanimously agree on an optimistic long-term price trend for the cryptocurrency sector, the majority are skeptical towards the short-term momentum of bitcoin, given the 70 percent correction it has suffered since January.

After dipping below the $6,000 mark and falling from $19,666 to $5,920 by recording a 70 percent drop in value, the most dominant cryptocurrency in the global market has rebounded to the $7,000 region, and briefly achieved $11,600 last week.

But, as demonstrated by a cryptocurrency analyst better known as Wolf of Crypto below, it is important to acknowledge that bitcoin has suffered the third worst crash in its history, behind the 83 percent crash from $259 to $43 in April 2013, and the 87 percent crash from $1,163 to $152 throughout late 2013 and 2014.

But, as demonstrated by a cryptocurrency analyst better known as Wolf of Crypto below, it is important to acknowledge that bitcoin has suffered the third worst crash in its history, behind the 83 percent crash from $259 to $43 in April 2013, and the 87 percent crash from $1,163 to $152 throughout late 2013 and 2014.

If speculators and investors expect 10 to 100-fold returns, it is only logical to also expect 50 to 80 percent decline in value, given that volatility exists going up and down. Moreover, the cryptocurrency market is still at its early stage; not enough retailers have adopted cryptocurrencies as a payment method and not enough projects have shown commercial success to demonstrate their potential to revolutionize trillion-dollar industries.

It is difficult for any major cryptocurrency to recover from its recent 70 percent correction because this time, investors in the mainstream and public markets have been damaged by the decline in the price of cryptocurrencies. Previously, cryptocurrencies were considered as an up-and-coming asset class with the potential to be worth many trillions of dollars in the future.

Now, a small portion of investors that experienced significant losses in the latest correction see the market as a bubble and as a failed opportunity, despite the optimistic comments of some of the finance and technology industries’ largest names, including Peter Thiel and Alan Howard.

The mainstream media is contributing to the continuous decline in the value of bitcoin, by offering predictions that can be considered absurd, given the lack of basis for them. For instance, a recent coverage by Bloomberg claimed the price of bitcoin will likely fall to $2,800, without providing evidence or indication of some sort.

Featured image from Shutterstock.

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