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The Worst Is Yet to Come for Bitcoin?

coinbase

Should you HODL or should you start selling Bitcoin to minimize losses? Bitcoin price was able to go up by 33% in April getting investors’ hopes up. However, it is currently trading below $6,000 and even close to losing 60% of its value this year. And in contrast to its peak six months ago, Bitcoin has crashed by 70%.

Customers of Coinbase, the largest US-based crypto exchange, seem to be giving up on Bitcoin. In fact, investors are withdrawing more money than they have deposited in April according to Chime, a bank startup that specializes in offering free checking accounts in San Francisco.

Since December, there was a relative increase in withdrawals. However, April was the month when money getting out of Coinbase exceeded the amount of money flowing in. According to the numbers, for every dollar deposited on Coinbase, investors withdrew $1.37. However, deposits outweighed the withdrawals in May. However, it was only by a 10% margin depositing $1.10 for every dollar that is withdrawn from the exchange.

Done on 500,000 Active Customers

The study was done on 500,000 active customers, most of which are between ages 25 and 35. And for this reason, it is possible that there is a chance that it may not actually represent the entire customer base of Coinbase. Currently, there are around 20 million users on the platform. Upon hearing the report, Coinbase declined to comment.

Dead Crypto Projects

And with the trend seen on Coinbase, this isn’t something rare. In fact, there seems to be a universal theme these days. In fact, Coinopsy and DedadCoins have discovered 1,000 crypto projects in 2018 that have already failed. The projects range from scams to ventures that have been investigated by the SEC.

More Losses to Come?

And there are many reasons for the decline of Bitcoin price. In fact, from high fees and slow transaction times to hacking incidents recorded lately, these are just some of the things that made Bitcoin lose its charm.

It is possible that it isn’t the worst. If you will ask Ran Neuner who is the founder of a blockchain company called Onchain, he believes that Bitcoin is still expected to drop. “Unfortunately, the same model that told us we would be going to $5,900 is telling us that there is more blood to come”. He also added that “The model is calling a 62% chance of a bear market, and a bear market means that we are going to test $5,350 as the next point”.

“Right now, my money is on the market continuing to go down” as reiterated by Neuner.

Should you be buying more or should you be holding on to your cryptocurrencies? If you will ask Neuner, he said that decision depends on the individual’s own motivation for buying cryptocurrencies. If you are waiting for another bull-run, then this is an opportunity to actually buy more cryptos. Keep in mind that there is the possibility of institutional investors getting involved now that slowly there is slowly becoming crypto regulation clarity. In fact, US Securities and Exchange Commission has considered Bitcoin and Ethereum as commodities.

 

Janneke Eriksen

Janneke is a writing ninja and has vast experience in journalism, specifically in the crypto space. As a blockchain believer and avid Bitcoin fan, she’s incredibly excited to share to our readers the latest news around so they are always updated wherever they are.

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