Bitcoin Struggles: Bears Back in Town?
Jan 10, 2018 Posted / 6425 Views
On Dec. 17 Bitcoin was the first digital currency to record a high of $20,000 mark, however, a few days afterwards Bitcoin underwent a rather hefty correction to $12,000. Not only this currency saw multifold levels of fluctuations before bouncing back and reconciling at $13,000 and $15,000 and facing corrections. This has left us wondering what if the bull period is long passed and the bears have captured the market.
If we look back at the 2013 Bull Run, it was ended with the theatrical falling down of Mt. Gox. However, the bulls reigned again and since after nothing that big happened to Bitcoin. Nonetheless, China’s initial banning of the ICOs and then closing down the cryptocurrency exchanges in the country last year did affect the currencies position. At present, the Chinese government is aiming to diminish the cryptocurrency mining.
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It is noteworthy that China has been a long time the epicentre for Bitcoin mining, because of the country’s inexpensive electricity prices. Currently, the Chinese government is taking into account the restriction strategies to change the economics of Bitcoin mining by ending the miner’s access to inexpensive sources of power.
There has also been an additional transformation in the supremacy factor of Bitcoin as a major portion of the population who earlier invested in Bitcoin are right now looking for better performing altcoins. This diversification can be seen from the market capitalization figures of Coins like Ripple, Ethereum and Tron, whose price value have surged by great percentage and this has essentially lead to drop in market share from Bitcoin. As of March 2017, Bitcoin constituted 85% of the entire market capitalization of the total market. At present, Bitcoin’s so-called supremacy, or market share, has slid to an all-time low of 33.6%.
India is proposing a more hostile stance towards Bitcoin as the government seeks to intensify regulations on digital currencies. Lately, an advocate filed Public Interest Litigation to instantaneously regulate the exchange of Bitcoin in and out of the country.
Venezuela is one country where Bitcoin has thrived as the political unrest and economic breakdown escalated in the country, however, President Maduro has ordered the issuance of the country’s own digital currency- the Petro. Many Venezuelans view this currency as the biggest Bitcoin’s competitor. Nonetheless, it should be noted that a country officially issuance of its own cryptocurrency definitely adds legality and authenticity to the concept of cryptocurrency as a sum total. Additionally, since Maduro can’t hold back himself from printing a practically unconstrained supply of Bolivars, it’s possible the Petro will ultimately undergo an equivalent hyperinflation.
The cryptocurrency charts may confuse any speculator with Bitcoin’s price at present experiencing a consolidation period. We can just forecast that the sideways “triangle” could rupture either up or down later this month. Volume is also down, below its 30 days moving average, but this is frequent in a consolidation stage. It should be taken into account that the augment from $9,000 to $20,000 happened in just three weeks, so the market probably requires some time to reinvent itself.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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