According to the news report by Bloomberg, the price of the world’s most valuable cryptocurrency fell below the $6k mark to trade at $5,826.41 at 04:34 UTC on June 25. This figure broke the previous 2018 record low that Bitcoin reached in February this year. The good news is that the world’s number one cryptocurrency regained some of its value on Monday morning trading, going back above the $6,000 mark.
Bitcoin has dropped about 55% of its value since the beginning of 2018, and about 68% from its record high of almost $20,000 in December 2017. Analysts feel this tumble from its massive highs of last year are because of regulators coming down hard on the cryptocurrency. Critics of the crypto industry have been vocal about the ease with which these digital assets can be used as instruments of fraud.
Things have made even worse with a string of hack attacks on cryptocurrency exchanges in various parts of the world, the worst of which took place in Japan a few months ago, when the cryptocurrency exchange Coincheck was the victim of a $500 million heist. The latest heist in the 6th largest cryptocurrency exchange in the world, South Korea based Bithumb has also pushed the price of Bitcoin even further down.
One of the biggest downers for the cryptocurrency has been last week’s BIS report on cryptocurrencies as a whole and Bitcoin in particular. The BIS – the Bank of International Settlements – the central bank for central banks, in this annual economic report, gave a withering critique of Bitcoin and the industry. The report stated that Bitcoin could not become a currency like other fiat currencies for multiple reasons.
Firstly, the cryptocurrency’s mining operations were an environmental disaster, considering the amount of power it consumed. Then, the cryptocurrency had massive scalability issues. If Bitcoin were to handle the number of transactions that a traditional payment system did, it would basically break the internet with the amount of space and computing power it would need. Additionally, the cryptocurrencies were too volatile to offer the store of value that was required of a legitimate currency.
The bad news continued for the cryptocurrency world when, on Friday, the Japanese financial regulator, the Financial Services Agency (FSA) ordered 6 of the top cryptocurrency exchanges in the country to improve their security measures to prevent money laundering. Japan is one of the most crypto-friendly nations in the world, and regulatory actions taken by the country’s FSA just demonstrated the fragility of the cryptocurrency market. Especially when there has been a paucity of good news for the struggling industry.
However, proponents of the Bitcoin and the cryptocurrency world refuse to give up. According to the report by Livebitcoinnews, tradinganalysis.com’s crypto-analyst Todd Gordon still thinks that Bitcoin will see a price rebound of $10,000 or more soon. He stated that he had expected Bitcoin to drop in value the way it has so far this year. He said that the crypto needed to fall like this to get rid of the long positions and that he was expecting Bitcoin to fall further to below $5,000, maybe even reaching as low as $3,000 before its recovery begins.
Once it reaches that point, Gordon expects the “technicals” to kick in and after that the price of Bitcoin will begin its recovery, crossing $10,000 from 2019 onwards. Gordon stated that Bitcoin was a highly technical market and that investment was going to come back soon.
Gordon is not the only to predict a comeback by Bitcoin. Fundstrat’s Tom Lee feels that the price of Bitcoin will reach $25,000, while John McAfee is expecting the price of the crypto to reach $15,000.