The end of the year fall
November 14th had a significant drop in the cryptomarket, and not even Bitcoin was exempt from this sudden decline that brought it down to $5 590 US at the time of writing this. This drop puts Bitcoin under the $6 000 US mark, which was what many people feared would have come from the last decrease back in September of this year. After the fall in September, it was widely believed that Bitcoin had hit bottom, and that was one of the reasons it had stabilized until yesterday’s drop.
Ethereum and Ripple, the second and third-ranked cryptocurrency, also fell. Ethereum dropped around 14% to be at $176 US and Ripple is down 7% to $0.47 US. The market across the board generally told the same story as most coins fell.
Although it is too soon to tell the actual reason as to why the drop happened there have been some theories that various experts have given. One of the possible reasons that https://ethereumworldnews.com mentioned is Whale manipulation, which means investors who hold a large portion of the market are trying to sway the price. Another is a bear market breakout, which refers to investors with a negative mindset pushing the price down further than what is expected. Also, there is the idea that this sell-off is because of the incoming Bitcoin Cash hard fork, which happened today. Some of these theories are harder to swallow than others, as both of the concepts of whale manipulation and a bear market breakout implies that the market is easier to manipulate than we would like. However, there is another theory here that I want to give some light.
Photo by Joseph Gruenthal on Unsplash
In the summer of this year Arthur Hayes, CEO of BitMEX, predicted that Bitcoin would drop to 5 000, and with its current price, we still could see that drop. Arthur Hayes believed this drop was due to investors cooling off in the summer months, and when it didn’t happen people thought it wasn’t going to, but perhaps that period was merely just pushed back. Haye’s also predicted that by the end of 2018 we would see Bitcoin rise to 50 000 US once the Bulls regain control, and with any hope that prediction was also just pushed back into 2019. As in any situation, panic isn't the answer and remember the pendulum can always swing back.
-Written by James Hepburn