Bitcoin: the cryptocurrencies Loss threatening, the rate to lows of the year
Bitcoin price moving in range above $ 6,000 in the past two weeks. However, on Wednesday 14 November, the rate fell to a minimum at the level of 5523 dollar. The cryptocurrency has lost about 13% of its value in less than five hours. Total capitalization also fell below $ 100 billion for the first time since November last year. On Monday 19 November, the price dropped to 5000.
The fall of bitcoin has had a Domino effect on the cryptocurrency markets. Five largest cryptocurrency has also declined by more than 10%, and the capitalization of cryptocurrency markets has fallen below $ 200 billion. Bitcoin is Cash, which was divided on 15 November, was the biggest loser, is quickly losing 15% of the cost.
Among experts there is no consensus on the reasons for the price collapse. Thane Loutra, co-founder of the network of transactions in Ethereum, pointed to two events that occurred simultaneously with the collapse of the cryptocurrency markets.
The first event was the expiration of futures on bitcoin. The second possible reason for the fall of cryptocurrency markets is a fork of Bitcoin Cash, which was divided into Bitcoin and Bitcoin ABC SV.
Loutra says that the fork can lead to displacement of resource mining, because both cryptocurrencies use the same algorithm for entry of new coins. If the price of one of these two (Bitcoin and Bitcoin ABC SV) increases for miners becomes more efficient to start production of more valuable coins. Mining is an important factor in determining accessibility and trade of digital currencies in the markets. Despite slumping prices, Loutra optimistic about the cryptocurrency markets. This year is much more realistic using actual utility of cryptocurrencies.
Another expert, Chris Burniske, author of a book about cryptogenic assets, rejects the reason for the drop in fork Bitcoin Cash. He believes that this is not true for the prices of bitcoin. Derek Urbain, chief financial officer Coinigy, a cloud-based trading platform, echoes this view and says that bitcoin has another opportunity to fall by the end of this year. According to him, the ratio of Network Value to Metcalfe (NVM), which is used to evaluate BTC based on the growth of its network, does not support the current price of bitcoin.
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