The crypto market has seen major drops in the past few weeks. Last month, bitcoin was seen floating around in the $6,000 range showing signs of improved volatility, but this month, we have seen it drop down continuously and at the time writing, it stands at around $3,708 (as per www.coinmarketcap.com).
But what might have triggered these drops in bitcoin’s price? In order to get an idea of this, BlockPublisher got in touch with a crypto analyst, Eric Thies.
Sharing his thoughts regarding the reason behind this bitcoin price drop, Eric stated:
Capitulation my friend. What we are seeing is something extremely good for bulls as it shows the major players in the market are forcing the weak hands out and dipping their hands into the liquidity of the 2017 buyers, something we have not seen yet to this point. Can we go further down? absolutely. Will we? Time will tell. The pullback are similar to prior market cycles as of now which would pin poin a $2.9k bottom however indicators show we could wick down as low as $1800 to really scare some investors out of their chairs
Further pointing an important detail regarding all this, Eric said:
Keep in mind the fear being created is being absorbed by whales as they begin to accumulate more and more than they already have.
Eric stated an important detail regarding the accumulation that might be being done by the whales in the hindsight of all the chaos that is being seen right now in the crypto world.
The kind of volatility that is being shown by bitcoin is not something that should come off as shocking. We have seen this asset go through serious price jumps and drops in the past as well. Last year’s bull run and this year’s bearish run are in front of everybody. Also, bitcoin is the largest cryptocurrency in the world in terms of market capitalization. Whenever it changes its direction, it usually brings smaller cryptocurrencies along with it. And right now, the market is pretty down alongside bitcoin.
Many bitcoin proponents in the crypto world are telling people to stay patient while those who say bitcoin is a fraud are flooding the social media with their malicious remarks regarding this world. It will be interesting to see how things turn out as we move forward amidst this market chaos.