Bitcoin

Bitcoin (BTC) Price: Another Day of No Growth, Little Reds Here and There

Bitcoin (BTC) has yet another day shown no signs of growth, just the opposite. The valuation of BTC has fallen below $3,600 according to BlockPublisher’s index at press time once again and the speculations are floating around. According to most analysts, the market was just overinflated in 2017 and 2018 and this period is merely a period of correction and is a depiction of the real valuations, consistent with the fundamentals of the currencies. Feranmi Akeredolu, the content marketer at Guava Digital Assets Ltd. had similar views, he stated, talking to BlockPublisher,

I believe the crypto market is going through a correction period, and the current price fairly represents the value of most of these crypto assets. The catalyst for the bullish period we witnessed in 2017 was due to retail investors, but since then we haven’t had any other significant catalyst.

Sukhi Jutla, Founder & COO at MarketOrders, also had similar views, she believed that the scam ICOs gave hype to BTC and ETH, with the elimination of ICOs, the demand became lower. She stated,

This is a natural correction of the market as the markets were overly inflated over the last year which lead to the crypto crashing in 2018 due to the realization that many ICOs were scams and had been hyped. There were also more ICOs in 2017 so this led to a surge in investors buying ethers and bitcoin. 2018 had far fewer ICOs so the ether and BTC coins also feel as demand was lower.

Naturally, every investor’s attention has been driven towards the BTCs ETF and how it would prove to be the light at the end of the tunnel for the bear market. Regulations and ETF are being given a lot of hype during the bear market and the importance has naturally increased with the drop in valuations and market caps. Regulations might actually increase the market cap while contributing to stability, but will the ETF affect the price of Bitcoin as much as it is anticipated? This is a totally different debate in itself. Regarding this, Feranmi stated,

I don’t believe bitcoin ETFs would drive the price to the levels we saw in 2017. Why? Institutional investors are more cautious than retail investors. Also, most institutional investors would rather use Over-The-Counter
methods to move large bitcoins rather than through exchanges, which will have little effect on the global market price.

The price has been affected previously by different catalysts. According to Feranmi, the next catalyst could be awareness and adoption in places where the word of Bitcoin has not yet spread. Taking specifically about his home continent, he stated,

The African market, which is still mostly underserved by crypto exchanges could be the next catalyst. Africa is the most populous continent with almost 50 per cent youth population. Just like China was once a catalyst for the price of bitcoin, Africa’s youth population could be another major catalyst too.

Rightfully so, the mass adoption and awareness might actually affect market caps and valuations more than regulations would, as the retail investors would naturally increase exponentially.

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Shehryar Hasan

Performing artist, guitarist and sub-editor at BlockPublisher. Shehryar is an electrical engineer and blockchain enthusiast. He holds investments in bitcoin, ethereum, OST, TRX and Ripple. Email: shehryar@blockpublisher.com or contact the editor at editor.news@blockpublisher.com

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