Bitcoin has remained stable in the past months. It has been fluctuating around $6,200 to $6,500. In fact, Mike Novogratz thinks that it has bottomed already. It has been viewed as a sign of maturity by many experts. However, it seems that Novogratz is wrong as Bitcoin dropped as much as 9 percent to as low as $5,390. It is now the lowest level that Bitcoin hit this year.
However, Bitcoin isn’t exactly alone. There are other cryptocurrencies that were also dealing with losses. Ethereum lost as much as 13 percent. On the other hand, XRP, which is the third largest cryptocurrency lost 15 percent of its value. That is even after XRP experienced a good run in the past weeks after xRapid was announced.
In fact, the entire crypto market lost $15 billion in just 24 hours. And currently, the crypto market lost around 70% of its market capitalization since the start of the year.
Bitcoin Cash Hard Fork
The sharp decline is most likely because of the upcoming hard fork in Bitcoin Cash. There is uncertainty as to what could happen next to Bitcoin Cash. Craig Wright and Roger Ver are already advocating different versions of Bitcoin Cash.
If you are going to ask Mati Greenspan who is the senior market analyst at eToro, “The end result will most likely be a split in the network resulting in two different versions of Bitcoin Cash when both upgrades go into effect this Thursday”.
For Joshua Frank who is the co-founder of crypto analytics TheTIE.io, “There is a tremendous amount of FUD surrounding the Bitcoin Cash hard fork”. And also, “It seems like there is a lot of confusion in the market as to what is driving price and who will emerge as the winner in the BCHABC vs. BCHSV fight”.
By November 15, there will be two digital currencies coming from Bitcoin Cash. It is going to be the Bitcoin ABC or the core Bitcoin Cash and the Bitcoin SV otherwise known as the “Satoshi Vision”.
Frank thinks that “We have seen this FUD and confusion in Twitter conversations. This is reflected by the fact that Bitcoin Cash has had sentiment volatility three times higher than any other major cryptocurrency over the last 24 hours and BCH’s tweet volume is 217% higher than its 20-day moving average”.
More Technical in Nature?
If you are going to ask Greenspan, he believes that the drop in Bitcoin’s price is “more technical in nature” especially when looking at other market factors at play. Greenspan even mentioned the tech stock sell-off. He said that “Another contributing factor is the selloff in tech stocks, which could be having a spillover effect into crypto markets”.
Eric Ervin who is the CEO of Blockforce Capital has offered some perspective regarding the recent plunge. He also believes that it is “purely technical moves”. He also mentioned that “The significance of the $6,000 support level shouldn’t be understated. As the bear market has trudged along these past few months, that level has held steady”.
Is Bitcoin going to recover soon? There are predictions that Bitcoin and the crypto market is going to become bullish soon. Could it be the case? Or maybe, Bitcoin is still going to bottom by next year?