Bitcoin price drop: Is 2018 Crypto’s annus horribilis?
Following the highs of 2017, specifically the tail end, 2018 has been a horrible year for cryptocurrencies. But why has there been such a big Bitcoin price drop , and what does that mean for the future of cryptocurrency as a whole?
This week we saw Bitcoin fall another $1000, down to $6,764 at the time of writing. At the start of March, the original digital token in the world stood at $11,582, representing a drop of around 35%. It’s been a terrible start to the year for the crypto market, and that’s partly down to a slew of negative press surrounding both tech and currencies.
What’s driving the dip?
Most notably, Google, Facebook and Twitter have all decided to ban cryptocurrency advertising on their platforms, which includes the Facebook-owned Instagram. There have been regulatory efforts in China and Japan, even bans on mining operations due to power consumption. And then there’s the ever-present security threat and risk of scam artists plundering investor’s money.
Bullish crypto-advocates aren’t buying into the doom surrounding the current market prices, though. “Those who bought at the highs and sold at the lows definitely got burned” Mati Greenspan, an analyst for social trading platform eToro, told VICE News. “Those who believe the price will extend beyond $20,000 within the next few months or years have more of an incentive to buy now than they did a month ago.”
According to data from Coinbase, the currency exchange service that has been tracking Bitcoin since 2010, this represents the biggest drop in value since 2014, when Bitcoin saw 38% losses.
Where’s the good news?
But there may yet be good news for those still interested in investing: drops of this nature of routinely followed by a swift recovery. Currently, cryptocurrency value is broadly influenced by perceived value; the more people who know about it and are interested, the higher the price gets. This is why the ad bans are so destructive. However, the industry is built on innovation so if anything can get around ad bans and negative press, then cryptocurrency is the market to do it.
With the current drop and a likely rise on the way, this may be the right time to stock on up BTC before the price shoots back up to the $10k mark. For long term investors who think the price will reach the $20k mark, this would be the ideal time to buy in.