The news of bitcoin dropping in $4,000 range has taken the crypto twitter by storm. The crypto world has been put in a bit of a stir after the asset stumbled below the $6,000 and $5,000 mark in a matter of few days. Bitcoin staying in the “4k” range has twitter flooded with its price speculations. The chart for the past month describes what the asset has been through in the recent past.
Twitter has its feed flooded with some people panicking over this drop while some are suggesting other bitcoin proponents to stay strong. Regarding this recent drop, Anthony Pomliano, who is the Founder & Partner at Morgan Creek Digital, and also the host of the podcast “Off the Chain”, tweeted:
Bitcoin is down over 75% from its all-time high.
It is still the best performing asset class in the last 5 years.
It has dwarfed stocks, bonds, currencies and commodities since inception too.
Ignore the noise, trust the code.
— Pomp 🌪 (@APompliano) November 21, 2018
With this drop, many people who were in the crypto game with the aims to get profits have been left stunned. Heavy losses have been taken by many people. But is this situation new? The answer, no.
The asset has been pretty volatile since its global eruption. For an experienced crypto user, the market drops and spikes are not new. In the past, we have seen the asset go on roller coaster rides in terms of its price. December of last year saw the asset float around the $20,000 mark. Since then, the asset has faced serious drops, and rises, in its journey.
Right now, investors and the general public are holding back from entering this market owing to this volatility that is shown by the asset. Although bitcoin is aimed at becoming the future of currency, it is largely used by people just to gain profits in fiat. Owing to this extreme volatility shown by the asset, people refrain from using it as actual currency to make payments.
The current situation clearly signifies that the asset in itself is pretty nascent. Adoption has also been on the relatively lower side in the general public. A lot of maturity and stability is needed by the asset to establish a positive image of itself. Official acceptance is also on the lower side. Developments in the form of exchange-traded fund (ETF) and Bakkt will surely help the asset grow and mature. But before that happens, let’s see how much instability is shown by bitcoin, and how much the people suffer.