The crypto market has seen a serious downfall in the past 12 months. Last year in December, bitcoin was almost touching the $20,000 mark whereas this year, it is down in the $3K range. Ethereum, on the other end, enjoyed its highs above the $1,000 mark at the beginning of the year whereas now, it is roaming above and below the $100 mark.
Recently, BlockPublisher got in touch with a well-renowned crypto analyst Eric Thies in order to get his perspective on Ethereum’s price drop. In reply to the question regarding where Ethereum might head, he stated:
Eth answered our questions for us! One more impulse down is still very possible. That’s approx $2500 BTC, $50 ETH & $12 LTC. Ive been scaling in personally, understanding it could go red. My goal isn’t to catch the exact bottom, just accumulate as much as possible prior to clear bulltrend emerging.
As hinted by Eric, bitcoin might be heading further down to the low of $2,500 with ETH seeing $50. This drop could result in the loss of a large amount of money for many investors in the game. But as pointed out by Eric, a clear bulltrend is making its way amidst all the chaos that is happening right now.
One thing that is clearly inferred from these drops seen in the prices of crypto assets is that the crypto world is still very nascent and the volatility associated with it is a serious issue. The market is seen going up one day and the very next day it is down on its knees. People hold back from using cryptos as a source of making payments because the prices fluctuate too often. Official acceptance of cryptos is also on the relatively lower side due to this issue of volatility.
A crypto-linked exchange-traded fund (ETF) has not been approved by the regulatory body in charge, the United States Securities and Exchange Commission (SEC), owing to some serious issues associated with the crypto world such as liquidity, custody, manipulation etc. Volatility is one of these issues. If this market is to grow and mature, this problem needs to be solved as soon as possible.
As suggested by Eric, we might see a further drop in the prices of the major crypto assets. Let’s see what happens as we move forward.