According to the news report by CNBC, Bitcoin’s downward trend speeded up with the world’s most valuable cryptocurrency in terms of market capitalization hit its lowest level in over a year.
The number one cryptocurrency plunged by more than 11% in the last 24 hours by Asian trading hours on Friday afternoon. Bitcoin traded at its lowest today at $3293.31 per token. The digital asset was trading at $3436.5 at the time of writing this article.
Most of the other major cryptocurrencies also fared as badly, with the price of Ripple (XRP) and Ether (ETH) falling as sharply in the same time period. According to data from Coinmarketcap, Ripple’s price nosedived more than 10% in the last 24 hours, while Ether saw a fall of over 15% in its token price.
According to the director of the financial technology company Kapronasia, Zennon Kapron, the cryptocurrency market definitely seemed to be suffering, its bearing trend not easing up due to a generally negative sentiment towards cryptocurrencies.
Kapron also stated that the cryptocurrency market was strongly retail driven, which meant that group sentiment would play a big role in movements, which is why it was so volatile. He stated that unless there were some positive drivers soon, this slump in the crypto markets could well continue into 2019.
2018 has been generally bad for the cryptocurrency market, with the entire market losing over 86% of its market capitalization since January. 24 hour trading volumes have also nosedived by 61.63% since the market’s highs at the beginning of this year.
Bloomberg reported that according to the president of ProChain Capital, David Tawil, new lows are being witnessed for everything this year, not just cryptocurrency markets. He stated that the current environment was a risk-averse one and that no risk assets were safe at this point. He added that right now, only treasuries and cash that would be up with the prevailing market sentiment.
Interestingly enough, the one cryptocurrency that has gained in the last 24 hours despite the overall market rout is the brand new Bitcoin SV (BSV), which was created out of the split in the Bitcoin Cash (BCH) network that took place on November 15.
While the rest of the top ten cryptocurrencies in the market were nosediving, CCN reported that upstart crypto’s token price skyrockets by 32.5% in the same 24 hour period.
However, according to analysts, this early surge by Bitcoin SV should not be interpreted as a full-fledged breakout. This rally by the new crypto coincided with BTC.com’s revelation that it was adding replay protection support. Basically, people who own BSV tokens would be able to withdraw their crypto without being subjected to a replay attack scenario.
According to Forbes, several analysts have tried to explain the cryptocurrency markets recent weakness by using technical analyses, stating that Bitcoin fell through key support levels and subsequently suffered significant losses. This is because once the crypto fell through a crucial level, this triggered a market sell-off, which led to even more severe losses.
According to the publisher of CryptoPatterns, Jon Pearlstone, falling through the $3.4k level was actually a major event for Bitcoin. He said that sometimes, however, such dramatic drops could also be a sign of a stop loss run, so that weak hands could be eliminated. He emphasized the fact that sharp declines such as the one experienced by Bitcoin can lead to the execution of the stop-loss orders.
Whether Bitcoin has finally bottomed out or will still continue to experience further losses in the future remains to be seen.