Crypto's black Wednesday: Where do we go from here?
Cryptocurrencies are notoriously volatile, but even seasoned traders were taken aback by the price action on Wednesday and Thursday.
Bitcoin is down roughly 15% compared to the day before and is trading at $5,380 on Coinbase at writing time. Ethereum fared even worse, dropping roughly 17% to $171 and losing the position of the second largest coin by market cap to XRP, which is also down more than 10% in the last 24 hours.
SEE ALSO:Hublot's new watch is a perfect fit for Bitcoin millionairesWe've seen sharp price drops like these before, but this selloff is notable for several reasons. For one, it came after nearly three months of relative stability in the crypto market; some even pointed out that Bitcoin has become more stable than some of the stocks listed on Nasdaq.
And while the prices showed signs of modest recovery in early Thursday trading, the depths that they've reached aren't very promising for the crypto market's future. Bitcoin has recently been trading at roughly one third of its December all-time-high price of $19,789, but (except for a very short period in June) it steadfastly refused to go below $6,000 all year, which established that price as an important resistance level. The fact that that level's now broken indicates the bear market will continue.
The reasons behind Wednesday's crash aren't easy to discern. The Bitcoin Cash power struggle (read the sordid details here) and the uncertainty it brings, was a factor. But it was more likely just a catalyst for a market that needed a reason for a correction. On a broad level, Bitcoin's adoption as a means of payment has been glacially slow, and Ethereum's promise to become a world computer has been hampered by scalability issues, which probably won't get solved very soon.
"Price volatility is not unusual in the crypto landscape — however, today’s dip is significant enough to prompt industry players to stop and take stock of the reasons why. It’s safe to say that Bitcoin Cash’s upcoming hard fork was stirring uncertainty amongst crypto investors, and forecasters across crypto and traditional markets alike have predicted a prolonged bear market heading into 2019," Donald Bullers, the North American Representative for Elastos, said in a statement sent to Mashable.
The Bitcoin Cash drama still isn't over (the coin is set to fork -- divide into two coins -- on Nov. 15), so more volatility over the next couple of days is to be expected. But what will happen to cryptocurrencies in the long run? According to experts, these sudden price changes don't mean much.
Charles Hayter, the CEO of CryptoCompare, told Mashable via e-mail that volatility like this is to be expected in a “nascent industry” such as crypto. “The story remains the same for bitcoin and other cryptos - better regulatory clarity and institutional interest as we see the continuing trend of digitised assets with the birth of a new asset class,” he said.
One possible event that would help that become a reality would be SEC accepting one of many proposals for a Bitcoin ETF. The regulator has rejected or postponed the decision numerous times this year, and several more proposals are to be decided on in the near future. However, with the cryptocurrency space getting increasingly regulated, countries like Malta and Switzerland bidding to become the next "crypto valley," and major players such as Coinbase launching tools that cater to the needs of institutional investors, one has to wonder if it's just a matter of time.
"Crypto price slumps can often create misconceptions about the future of our industry, but perhaps what is most important to remember during periods of volatility is that the underlying blockchain technology solves real-world problems across the real economy. Crypto prices may rise and fall for reasons that are difficult to identify, however, the blockchain industry will remain strong and continue to grow," Casey Kuhlman, CEO of Monax Industries, said in a statement sent to Mashable.
Disclosure: The author of this text owns, or has recently owned, a number of cryptocurrencies, including BTC and ETH.
Featured Video For You
A teenage millionaire built a real-life Dr. Octopus suit
(责任编辑:新闻中心)
- Aricell CEO arrested in first case under industrial accidents law
- Tom Hiddleston thinks his Golden Globes speech was as cringey as you do
- Only 'high
- 'black
- DNC 2024 speech: Barack Obama and Michelle Obama have a superpower no other Democrat has.
- 尝“鲜”盛宴,等你来探!2024年清远西牛麻竹笋尝鲜季即将启幕
- Google Maps removes Uber feature for booking rides without leaving app
- What will Pyongyang expect from return of Chung
- Twitter is not a fan of Jimmy Fallon's Chris Rock impression
- The Analog Embrace: How Some Experiences Are Surviving the Digital Age
- 小心烟花爆竹“伤”爱车
- Twitter is not a fan of Jimmy Fallon's Chris Rock impression
- Oppo found a really creative way to kill the smartphone 'notch'
-
Pakistan Cricket at crossroads after shock defeat at Pindi
KARACHI:Bangladesh cricket team's stunning ten-wicket Test victory at Rawalpindi on Sunday yet a ...[详细] -
What will Pyongyang expect from return of Chung
Then-national security adviser Chung Eui-yong, third from left, and then-National Intelligence Servi ...[详细] -
“家电下乡”这一惠民政策,让广大农村消费者在用上新家电产品的同时,也享受到了国家的惠民政策。今年1月,财政部、商务部、工信部等联合发布通知,将12类下乡产品限价范围大幅提高,如彩电和手机的最高限价提 ...[详细]
-
Chris Hemsworth's kids watching him on TV at the Golden Globes is too adorable
Loathe the thought of having children? Well, maybe this photo will change your mind. Maybe.It's of C ...[详细] -
Scientists discover where the huge dinosaur
A menacing asteroid, some six miles wide, triggered Earth's last mass extinction. Now, scientists ha ...[详细] -
North Korea's leader vows to improve ties with outside world
In this photo provided by the North Korean government, North Korean leader Kim Jong-un attends a rul ...[详细] -
White House vows to pursue additional pressure on N. Korea
The White House vowed Wednesday to pursue additional pressure on North Korea, condemning the regime' ...[详细] -
North Korea wasted chance to improve relations under Trump, US envoy says
In this file photo taken on June 12, 2018, U.S. President Donald Trump, right, meets with North Kore ...[详细] -
Pranks can be awesome. They are one of those few things in life that most people can unequivocally a ...[详细]
-
Sterling could not waste peak years at Man City
LONDON:Raheem Sterling revealed on Thursday that his move to Chelsea came about after growing frustr ...[详细]
We Bought the Cheapest DDR5 RAM Modules We Could Find, Are They Any Good?
Very important: The best and worst beards of the Golden Globes
- Yoon, US Senate's armed service committee chief discuss alliance, N.K. threats
- North Korea's rigid COVID
- North Korea's rigid COVID
- Shajar hopeful before running in 200m semis
- Discover Secret Swimming Holes and Hidden History in Crystal River, Florida
- GM Korea exec indicted over alleged bribery
- Watch Mike Pence gasp when no one claps at his terrible applause line