Bitcoin and the three factors of depreciation of cryptocurrency to be aware of
Stock Markets Group – Bitcoin remains under pressure and is ready to continue to decline. The news about stealing new cryptocurrency amounting to more than $ 40 million with South Korean exchange Coinrail, served as a strong catalyst of negativity.
Investors at the moment is remembered on the boundary below which the bitcoins should not be lowered, and the predictions about the price of cryptocurrencies in 25 000$. Hardly anyone today would doubt the devaluation of the world’s asset, Recalling the positive forecasts of Tom Lee and other members of the “witnesses of faith in Bitcoin.”
At the moment the situation in the cryptocurrency market have not improved, and this means that until a new leap down left quite a bit of time.
The loss of digital coins at 21:00 MSK., amount to over $ 1,500 that was one of the most serious of daily drawdowns bitcoin exchange rate in the current year.
Bitcoin will fall even if no reason
There are some implicit factors, which can be seen on further depreciation. They do not lie on the surface, but provide a stable support for the withdrawal of major investors from the asset.
Market fatigue. The more sound predictions on the value of the cryptocurrency, which is expected to increase, and the more this growth is only in the expectations, the more stupid it looks the open position from the new lows.
For the past six months, many players who bought bitcoin at the rate of $ 10,000 per coin, are in a long wait. A part of the position was closed at the beginning of may, when this mark was almost reached, but the money still waiting for the next breakthrough.
Technically the beginning of the year, the trend remains to the downside and it is a fact that is unlikely to change until the autumn.
Fundamentally, bitcoin is also still weak, and this is confirmed by the reaction of the players on multi-million dollar losses Coinrail and the beginning of the investigation, the American regulator of price fraud by four major cryptomeria.
Addiction to instability. Perhaps no one should be surprised by the fact that the Outlook for bitcoin is a “thankless job”, especially when there is no clear legal definition of a digital asset.
Today cryptocurrency is not a robust a financial instrument and trust the technical picture reflects a graph of Bitcoin.
What formations and shapes we can find on it, but their origin is rather a coincidence, and the desire of the players to artificially create them, rather than the result of market factors.
Therefore, there is a tool under it a lot of hopes and emotions, but there is no price component expressed by the increase or decrease. It’s always high risk to the large investor.
Lack of support for bitcoin for bitcoin. After the left market speculators, it has changed a lot. But the problem is that their place is not occupied professionals together with cryptologist.
The situation with the recent start of futures trading has exposed the vulnerability of market manipulation in derivatives. Large companies and did not actively use bitcoin, and more focused on blockchain technology.
It seems that many market participants are just waiting to be mined all of the coins, and only then the digital asset will gain at least some important evaluation parameter as a rare thing, even virtually.
The cryptocurrency market has indeed become more Mature, but the attitude to such assets as Bitcoin became more weighted than before. Any sharp rise is no longer perceived by members of the crypto community as a call to action, most waits and remains in the Fiat.
But this does not mean that bitcoin will soon disappear altogether, just to it will gradually decrease the interest and it will really be Antiques in a diverse digital world of cryptocurrency.
Stock Markets Group™