Bitcoin Price Could Lose Another 60% of its Value – Bloomberg Analyst Says
Bears have been strongly capitalizing on the cryptocurrency markets, as Bitcoin and the rest of digital currencies fail to create upside momentum amidst the loss of 80% of value in the past 11 months.
Bitcoin’s price dropped below the $4,000 level last month for the first time in fiscal 2018; the largest crypto coin has continued to trade in the range of $3,500 and $4,000 in the previous two weeks.
Although the market is waiting for a Santa Clause rally, bears expect more pain for crypto investors throughout this winter. Bloomberg analyst Mike McGlone says the virtual currency market is likely to face more downside pressure in the coming days – which could pull the Bitcoin price to around $1,500 in fiscal 2019. This represents a loss of another 60% compared to Bitcoin’s current price of $3,800.
‘There’s little to prevent fading Bitcoin prices from reaching the continuous mean of $1,500. A rush to the exits among investors seems to be in place, thanks to the Bitcoin Cash split and selling related to year-end tax purposes, among other things,” Mike McGlone said.
Bitcoin’s price plunged more than 35% last month, the largest monthly loss in the last seven years. The rest of the market had followed a similar pattern. The previous month’s selloff wiped off more than $70 billion from total cryptocurrency market capitalization.
McGlone blames short-term investors and a panic situation for worst losses, saying, “We’re at a classic psychological stage where the market is reversing the 2017 frenzy.”
“The hard fork was a key trigger that signaled the technology is way too nascent. You had these dicey characters threatening to destroy each other and institutions said ‘It might be best if we stay away from this for a while,” he added.
Despite the bearish trend, the market has experienced several positive developments – which would eventually add to the traders’ confidence. These developments include the G20 announcement for crypto regulations, Wall Street’s increasing interest, and the entrance of institutional investors.
The drop of the Bitcoin price below its mining break-even level isn’t sustainable over the long-term, according to Tom Lee and other crypto bulls. However, the market is currently in a panic situation and traders are still wondering about the bottom of the current bearish trend. Mike McGlone expects Bitcoin’s price to bottom around $1,500 by the end of the first half of next year.
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