Home / Crypto Currency / Bitcoin Price Watch: Currency’s Price Has Fallen, but Its Dominance Is on the Rise

Bitcoin Price Watch: Currency’s Price Has Fallen, but Its Dominance Is on the Rise

At press time, the father of cryptocurrency is trading for just under $3,700. This is about $200 less than where it stood on Sunday.

The currency continues to suffer from falling prices, though some reports suggest that its dominance is on the rise, likely due in part to the price drops. Now that bitcoin has lost nearly half its value in just a few short weeks, to say it’s “more affordable” would be something of an understatement. Some analysts believe that this is likely attracting the attention of several new institutional investors, who are looking to cash in on crypto while it’s cheap.

BTCUSD: BTCUSD: Channel Down showing 2800.

Chart by InvestingScope

Bitcoin experienced lows of approximately 51 percent in early November. Overall, it’s down by about 80 percent from its all-time high of nearly $20,000 last December. This figure, however, doesn’t even compare to the harsh injuries suffered by some of its major competitors. Ripple’s XRP, for example, is down by about 90 percent, while Ethereum has fallen by roughly 92 percent. Bitcoin cash is down by 95 percent since its recent hard fork, and EOS, the fifth-largest cryptocurrency by market cap, is down by about 85 percent.

Some industry leaders remain convinced that bitcoin is stuck where it is – at least for a little while, and we’re likely to see the crypto space remain stagnant for some time before recovery begins. One of those figures is Vinny Lingham, the CEO of Civic, who stated in a recent interview:

“I think it stays in the range between $3,000 to $5,000 at least for three to six months. I don’t think we break through the support level of $3,000 just yet. I think there is a lot of buying in the short-term around that mark. If we don’t get out of the crypto bear market cycle in the next three to six months, the $3,000 level could go. [Extreme volatility] doesn’t make crypto an investment-grade asset. If you keep speaking about institutional investors coming to the table and an ETF getting approved, you can’t have this sort of volatility in an asset class if you want big money to be involved.”

On the other hand, venture capitalist Tim Draper recently reaffirmed his position that bitcoin will reach a price of $250,000 by the year 2022. He believes that bitcoin will eventually come to share the currency market with fiat on a 50-50 basis:

“Down the road, when we can easily spend or invest or do whatever we want with cryptocurrencies – they’re frictionless, they cost you less. I mean, just by that alone, just that they cost you less, it’s going to be better for people, and so they’re going to move to crypto, and they’re going to go away from the political currency – they call it fiat.”

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ICO Funding Continues to Plummet Amidst Crypto Bear Market

The latest statistics regarding ICO funding in recent months shows that investors continue to turn away from investing in ICO projects amidst the persisting crypto bear market. The statistics, which were reported in the latest issue of the Diar digital asset newsletter, show that ICO fundraising in November plummeted to the lowest level of 2018. The drop in funding is likely tied to the cryptocurrency markets, which set fresh 2018 lows towards the end of November when Bitcoin fell to $3,600. Since then, Bitcoin has continued to trade sideways, and just recently set another fresh 2018 low at $3,300 last week. Because ICO fundraising appears to be linked to the cryptocurrency market conditions, it is likely that December will also be a rough month for ICO fundraising. ICO Fundraising Falls to 2018 low Amidst Crypto Market Turbulence According to the report, in 2018 alone ICOs have raised a total of over $12.2 billion, most of which came from the first five months of this year. ICO projects raised the most amount of money in February, during which over $2.6 billion was raised. January was the second-best month for ICO projects looking to raise capital, with $2.4 billion being raised. Fundraising then declined steeply in March and April but rebounded in May. Since then, ICO fundraising has steadily declined, and has nearly disappeared in November. Diar notes that last month, ICO projects only raised a mere $65 million. “Initial Coin Offerings (ICO) are all but over with November seeing total raised funds at $65Mn. ICOs in 2018 have raised over $12.2Bn but have now petered out from regulatory backlash fears, as well as a slow-down in cryptocurrency markets with token prices plummeting leaving retail investors with a bitter taste,” the report explains. Regulatory Concerns A Huge Factor in ICO Decline Although some countries are taking actions to promote regulated capital raising through token offerings, the United States has yet to institute any type of legal framework specifically for ICOs, and in their current state they have been deemed to be securities products. During a recent speech from the Securities and Exchange Commission’s (SEC) chairman, Jay Clayton, he noted that although ICOs can be an effective way to raise capital, they still must adhere to traditional securities laws. “ICOs can be effective ways for entrepreneurs and others to raise capital. However, the novel technological nature of an ICO does not change the fundamental point that, when a security is being offered, our securities laws must be followed,” Clayton said. Clayton also noted that ICOs expose investors to additional risks, including a lack of protection that comes with traditional equities, and increased exposure to potential fraud and manipulation. Diar concluded their report regarding the current state of ICOs with a pessimistic outlook, stating that without proper regulatory frameworks from global regulators, they will likely continue to lose their popularity. “It’s unlikely the contentious fund raising mechanism, at least in its current unregulated format, to garner much interest moving forward with regulated tokenized securities platforms paving the way for a new realm of finding investor capital.” Featured image from Shutterstock. The post ICO Funding Continues to Plummet Amidst Crypto Bear Market appeared first on NewsBTC.

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