The ups and downs of the Cryptocurrency market have become quite a spectacular affair as of late, with just about everyone and their dog wanting to pitch into the commentary. However, while this obviously has the benefit of spreading the word to the general populace about Cryptocurrencies, and as the saying goes, ‘there is no such thing as bad publicity’, there definitely is such a thing as negatively influencing the markets. How would we know that people’s words can negatively influence abstract little tokens of digital currency, well, after a new report came out stating that Bitcoin may not, in fact, be hitting that $20 000 mark again in 2018, the markets have begun to nosedive. And this is why they said if you didn’t have anything nice to say, you shouldn’t say anything at all.
Bitcoin Has Fallen
Bitcoin has dropped a total of 3% yesterday, the majority of the market mirrored Bitcoin’s movement also taking an apparent dip down to cooler climates. Yet, many have failed to see any reasonable forewarning or inkling anywhere in the market that this sudden fall from $6 467.01 to $5 799.62, this was the low point for Bitcoin in November 2017. Analysts are scratching their brains attempting to understand the sudden downturn since there were no major upsets within the markets or external environments. Yes, there was the minor influence of the tightening grip from legislators on Cryptocurrencies and trading platforms in general, but that has been occurring for quite some time and was no real reason for such a sudden fuse.
Bitcoin Makes Everyone Else Fall
As one can imagine the ripple effect of Bitcoin’s downward spiral affected all other major currencies as well, a derivative of Bitcoin, Bitcoin cash has slumped off to $719.89 which is a 6.9% fall. Other top-grossing Cryptocurrencies such as Ethereum have fallen by 2.8% to $460.37; in addition, Litecoin has slid 5.3% lower in the market and is now only trading at $82.16. To make matters worse one of the top Wall Street analysts, Tom Lee announced in a statement that he foresaw the Bitcoin price just making it through to $20 000 by the end of 2018. Now, this statement probably sounds extremely optimistic given the current performance of Bitcoin, but Lee initially predicted that Bitcoin would be trading at a high of $25 000 by the close of the year. The massive drop in fortunes is enough to make someone lose their appetite.
Apps Get Pulled
Another sad thing that coincidentally happened right around the
time that Bitcoin was dropping to its knees, once again, was that Square retracted its application to become an accredited loan provider with the Federal Deposit Insurance Corp or FDIC. Square is a well-known payments app, the company had initially noticed that people were using the ‘Cash’ app in a very similar that they would an ordinary account, they wanted to capitalize on that need within the market. However, Square says it isn’t abandoning the project, only that they wanted more time to work on it before handing it over to the FDIC for judgment.