Bitcoin price hits 2018 low but cryptocurrency investors hopes for recovery
Bitcoin price dropped as low as $5,787 after 24th afternoon. Crypto world saw Bitcoin’s lowest price in 2018 last Sunday.
According to the relevant sources, Bitcoin dropped to $5,947 on February 6th, 2018. Bitcoin is now trading at a price less than third of its peak in 2017. The cryptocurrency saw a hike of close to $20,000 in December.
The current drop in the price of Bitcoin and other prominent cryptocurrencies are due to the negative impact caused due to major catastrophic incidents in the recent past. Some major drawbacks include hack on a South Korean cryptocurrency exchange bithumb and other cryptocurrency exchanges.
The theft of $30 million from the Seoul-based Bithumb exchange last week was the second time this month that a cryptocurrency exchange in South Korea has been hit by hackers. In the recent past Coinrail exchange was hacked by the crypto hijackers. Both the incidents created a wobble in the cryptocurrency world. Ultimately resulting in the price drop of Bitcoin and other major cryptocurrencies.
Market observers and crypto enthusiasts called this cryptocurrency – a bubble in the months and weeks leading up to the peak.
The fluctuations in the market are expected in the current market scenario according to Matthew Newton, an analyst at the trading platform eToro.
Mr Newton told The Independent UK, “The reality is that emerging technologies carrying radically new ideas will always see swings in their value.”
“Market adjustments as we have seen over the past months can help to stabilise prices and move the industry towards a more robust, sophisticated regime. This is good for the long-term future of blockchain and [cryptocurrencies], giving the industry time to develop.”
Other minor factors also contributed to the drop in the price of Bitcoin. For instance, recent imposing of new restrictions by Japan on cryptocurrency exchanges in the country is restricting the investments. All other crypto scams also paved way for the current Bitcoin price. The currency’s decline has also affected by the hundreds of derivative cryptocurrencies and blockchain tokens, including all the major cryptocurrencies like Ethereum and Litecoin.
Even after all these, the investment in the currency made one year ago- when the currency was $2,700 — would still have created a117% annual return as of its lowest point today.
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