The week beginning Monday 18th November 2018 saw the price of Bitcoin plunge further continuing to dent what has been a rather tumultuous period for the cryptocurrency. According to reports, Bitcoin made losses worth more than $14 billion in less than 24 hours. Recent times have seen the coin trade for slightly over $4000.
Why Bitcoin’s Fall may be Terminal this Time
Cryptocurrency experts are of the opinion that the current plunge is possibly fatal for Bitcoin. It has experienced a loss of more than 63% Since its peak in December 2017, the coin has been on a downward spiral and has recorded losses of more than 60%. This translates to a 37% negative return for an investor that bought Bitcoin a year ago.
Volatility has always been an Achilles heel to Bitcoin. During the times that Bitcoin price has plunged, other cryptocurrencies receive a price boost. Recent times have not been the same since other cryptocurrencies are similarly experiencing a dip in price.
Possible causes of Market collapse
Cryptocurrency experts warned about an imminent collapse in market value of cryptocurrency. They speculated about a number of possible causes of the collapse. A hostile cryptocurrency regulatory environment and increasing pessimism towards cryptocurrency trade by the financial industry top the list of possible causes of the collapse.
Over the last few years, the cost of generating a single Bitcoin soared to approximately $7000. This translated to massive financial losses during the manufacture of the cryptocurrency. Despite the loss, some cryptocurrency advocates have opined that it is still a legitimate store of value even if it is not a useful medium of exchange.
Cryptocurrencies are still valued at more than $100 billion. Numerous signs point to an inevitable collapse, but no one knows for certain what the future holds for digital currencies.