Exctinction Concerns for Bitcoin Mitigate as the it Holds its Ground Above the $6,000 Mark

The volatility that has been associated with the market of cryptocurrencies is unknown to none. Since December last year, the traders have seen the value of bitcoin plummet from a humongous $20,000 level to a mere $5,900 level in June. Recently, bitcoin also hit a new low attaining a value even lower than the June mark as it floated around the range of $5,800.

This unstable behavior shown by bitcoin has raised several eyebrows in the market regarding its future. The market capitalization by the digital currencies has also dropped considerably in the past year. From a peak of around $835 billion in January, the total market capitalization now floats below $200 billion. This behavior has raised concerns among the investors and traders that whether bitcoin will be able to survive this tough drought, or will it continue to plummet resulting in an extinct nature of the digital market.

Good news comes for the traders and financial analysts in the crypto market as bitcoin now floats above the $6,000 level again. Bitcoin has tested this level several times this year but has always bounced back above it. Currently, bitcoin trades above $6,400 again, as per CoinMarketCap.

This also comes off as good news for the people that are looking to invest in the market of digital currencies in near future. As we move towards more wide acceptance of digital currencies, things are expected to get better. Bitcoin has been battle-tested over the past year but has managed to bounce back every time.

Alongwith bitcoin, other cryptos like ether and ripple also showed positive behavior quite recently. This recent trend might also be the ending of the bearish behavior that the digital currencies have shown in the recent past. Bitcoin is not likely to go extinct anytime soon as it has bounced back almost every time it plummeted in the past year.

Rejections of initial coin offerings (ICO) by the investors to the developing projects have also contributed to the downward trend shown by the digital currencies. But even if the prices tumble, developments are being made in the market which will possibly take the price values of the cryptos in an upward direction soon.

One of the reason for the decline shown in the market prices of cryptocurrencies can also be the little acceptance that is shown by the regulatory body United States Securities and Exchange Commission (SEC). With developments being made in the world of digital currencies, institutional investors are more willing to invest in the crypto market. But nobody wants to invest in something that is so volatile and filled with a plethora of fraudulent and manipulative activities.

The establishment of an crypto-linked exchange traded-fund (ETF) would solve the issue of institutional investment not coming in the crypto market. With a crypto ETF established, the market is expected to flood with more and more investments from large institutions making it more stable. But due to the prevalence of all the illegal practices in the market, the SEC is not quite approving an ETF right now. In the rejection given to proposal made by the Winklevoss twins, which was also backed by Bats BZX, the SEC stated:

Although the Commission is disapproving this proposed rule change, the Commission emphasizes that its disapproval does not rest on an evaluation of whether bitcoin or blockchain technology more generally has utility or value as an innovation or an investment. Rather, the Commission is disapproving this proposed rule change because as discussed in detail below, BZX has not met its burden under the Exchange Act and the Commission’s Rules of Practice to demonstrate that its proposal is consistent with the requirements of the Exchange Act Section 6(b)(5), in particular the requirement that its rules be designed to prevent fraudulent and manipulative acts and practices.

Lack of regulatory practices is also one of the reason why the SEC is not approving a crypto-linked exchange traded fund as of now. The protection of the investors is the ultimate priority of the SEC. But things seem to be going in the right direction regarding its establishment. With demands going through the roof, the situation is likely to be shifted in the favor of cryptocurrencies. One of commissioner at the SEC even dissented the decision made by the SEC concerning the rejection of a bitcoin ETF recently. It was stated in the dissent that:

The Commission’s mission historically has been, and should continue to be, to ensure that investors have the information they need to make intelligent investment decisions and that the rules of the exchange are designed to provide transparency and prevent manipulation as market participants interact with each other. The Commission steps beyond this limited role when it focuses instead on the quality and characteristics of the markets underlying a product that an exchange seeks to list.

But in the hindsight of the trend shown by the digital currencies in the past year, it might seem that this market too volatile and unstable at the moment. But as progress is being made regarding the advancements of digital currencies, it seems that the future of bitcoin and other currencies is quite bright.

Reddit’s co-founder and the VC of a well-renowned venture capital firm, Alexis Ohanian also believes that the digital currencies are about to boom in the near future. He stated that:

At the end of the year, Bitcoin will be at $20,000. And Ethereum will be at $15,000 [which he later clarified as $1,500]. Great, now people can call me out if I’m wrong.

In his opinion, despite the volatility, things are going to get better soon.

As volatile as it’s been, we see it continuing [to go] up over the long term, because more and more people are going to look for alternatives to fiat as a store of value as we see currency fluctuations with states failing and other uncertainty, that makes having a digital store of value like bitcoin something that’s desirable, because you don’t have to worry about withdrawing it from a bank or the value disappearing as a government money.

The consistent recovery trends shown by bitcoin and other digital currencies this year suggest that the possibility of digital currencies going extinct is getting very low with all the developments being made. The market is only expected to grow in the future.

Ahsan Khalid

Blockchain Developer. An Electrical Engineer with majors in software development. I present forward my insight regarding the latest happenings of the blockchain world. All views on my articles are my own. Email: or

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