The most significant crypto news this week was that Bitcoin hit its lowest level for the year mainly because of the uncertainty caused by the Bitcoin Cash hard fork. Now, many experts believe that there are other reasons for the sudden drop that affected not only Bitcoin but other top cryptocurrencies as well including Ripple and Ethereum. There are even those who are saying that this is merely a short-term event and the crypto market is going to recover soon.
Before Bitcoin dropped a few days ago, it was experiencing stability. In fact, Mike Novogratz was among the experts who thought that Bitcoin price may have bottomed already. It was even less volatile than tech stocks. And because of this, there were those who were led to believe that the market was maturing or people are holding on to their Bitcoin waiting for the next bull run.
But then, it happened. Bitcoin dropped to its lowest level for the year while other altcoins were losing more than 10% in the next 48 hours.
What Made Ripple Different?
Though most of the top cryptocurrencies were down by more than 10%, Ripple was quite different. Because of the partnership, it has established with institutions, it was able to minimize its losses. And also, today, XRP surged by more than 8% to $0.51.
The market is slowly recovering today. $4 billion was added to the crypto market increasing the total market cap from $181 billion to $185 billion. To give you an idea of how much was lost on November 15, the crypto market lost $27 billion, the crypto market coming from $210 billion. And now, it is expected that if the market is going to recover, it might actually take months.
Even Tom Lee of Fundstrat has decided to cut his bullish prediction on Bitcoin’s price by the end of the year. Tom Lee initially predicted that Bitcoin could reach $25K by the end of the year. But now, he now thinks that Bitcoin could only reach $15K by the end of the year.
Willy Woo believes that Bitcoin is not going to break out of its major resistance levels until mid-next year. However, it has been reported that Whales bought Bitcoin after it experienced the dip. Could it mean that even whales are anticipating the possible bull-run soon?
There are several positive developments in the market that could potentially cause a bull-run. For instance, ICE has partnered with Microsoft to launch Bakkt. In addition to this, you also have the potential participation of institutional investors once a Bitcoin ETF becomes a reality. The US Securities and Exchange Commission may have rejected a number of Bitcoin ETF applications and cited price manipulation as the main problem. However, it seems that there is still a glimmer of hope as many believe that the Bitcoin ETF application submitted by VanEck and Solid X could has the strongest chance of getting approved.
Bitcoin is currently back at around $5,600. Also, it seems that $4 billion was added into the crypto market. Will it be a steady recovery from this point?