Fall of bitcoin
Isaac Newton may have revolutionized our knowledge of the world as we know it, but he still had his blind spots. The physician got suckered into the mania of his day, the South Sea Bubble which cost him a ton of money. “I can calculate the motion of heavenly bodies but not the madness of people,” he is attributed to have reflected. If he had considered it In retrospect; his own very laws of physics might have been the answers he needed to apply. Just like his law of gravity: “What goes up, must come down", the laws of the financial market aren't too far off the mark.
Bitcoin investors are starting to appreciate, albeit negatively, this old truth. This is most pronounced within the last few weeks, with its continuous downtrend.
According to CoinMarketCap.com bitcoin valuation fell to a new bearish low at $89.42billion. At the same time, the price of the digital currency fell to an average of $5,143 on average as at the beginning of the third week in November. Overall, this continuous fall intensifies the possibility of Bitcoin establishing a double bottom anytime this year.
The forking of Bitcoin Cash (BTC) is often being touted as one of the main catalysts behind the unending plunge of Bitcoin. ~As an asset that appears stuck in unwelcome negativity, the reallocation of Bitcoin harsh power by the chief of a big mining company; to support Bitcoin ABC, one of the Bitcoin Cash Blockchain~. While this trend was meant to be temporal, it has left an indelible dent on the face of the Bitcoin Market and in general the entire crypto market, which now appears very much unstable to investors, now more than ever.
One other major catalyst for this decline can be attributed to the volume of family offices and institutional investors Another strong reason is the vast majority of institutional investors that trade with cryptocurrency, but without the use of exchanges; thereby cutting off a major arm of the trade. By buying over the counter (OTC), their trade with the OTC markets do not add any value or basically influence much of the market determinants governing the price of Bitcoin (BTC). At this level, the only viable trade that can influence the price of Bitcoin (BTC) is retail buyers. And these are buyers who; at present; the majority are not convinced that the market is ready for a reversal. The SEC's recent statement on how it plans to crack down on ICOs has also had its effects. This has set a fresh wave of panic coursing through the major investors. The situation is such that, if the other conditions and market forces remain as they are, BTC/USD has not seen the worst of the fall. Speculations are high over whether this latest fall might actually lead to market capitulation.
Of course; the fall of bitcoin causes a ripple through the market that will see altcoins to an all-time low; or at best the worst annual price fall. This might be terrible news to the people who need to trade their altcoins ASAP, but for new and potential investors; this might be the best time ever to go all in. This phenomenon is most especially good for holders. At the very least, November is most likely the month we see the worst of the fall and the perfect time to correct Bitcoin (BTC) trade faults. Tons of big league industry traders and analysts have had to lower yearend price projections for Bitcoin (BTC).
This in itself; says a lot for the ongoing trend