Bitcoin (BTC) is often associated with the emergence of blockchain, a distributed ledger technology that will always be with us from now on, with or without the crypto.
And today, it looks like without the crypto, as BTC stumbles around the ring, taking jabs and uppercuts, on the verge of a knockout.
That wasn’t the case as early as to weeks ago when banks around the world were incorporating cryptos in their bank to bank operations, and many in new retail concepts.
International Monetary Fund (IMF) chief Christine Lagarde said earlier this month that central banks should consider establishing their own digital currencies.
CGTN, an industry site, reported, Stephen Innes of forex company Oanda Corp. talking to Bloomberg and warning that if the (BTC) price gets any lower, “this thing is going to be a monster. People will be running for the exits.”
Well, the meltdown has stopped, momentarily, but is it enough?
Bitcoin on the ropes
As of press time, the price was hovering around $3,900, representing a 40% drop from two weeks ago.
It’s the biggest weekly drop since the second week of April 2013, when prices fell 44.8% from $165 to $91.
It was cheap and low enough at the time for investors to buy and become millionaires. Will history repeat itself?
CGTN says Bitcoins in circulation on December 17, 2017, had a total value of $327 billion. Today, that market cap is down to $68.5 billion, and the price selloff has wiped off more than $40 billion from BTC market cap in the past two weeks alone.
Around $100 billion have evaporated from the entire cryptocurrency market in only the past 10 days.
According to the VERGE, Bitcoin is in the middle of an astounding price drop, reaching prices as low as $3,520 in recent days and wiping out all gains from coins purchased this year.
BTC first fell below $6,000 on November 15 and has struggled to recover since, according to CoinMarketCap.
The beginning of last December, BTC passed $15,000 on the way to $20,000, late that month.
According to Forbes, the bitcoin price is now off some 80% from highs of almost $20,000 last December, while other major cryptocurrencies ripple (XRP) and ethereum are down by similar amounts.
“Low trading volumes over the holiday weekend, however, mean the market is more vulnerable to so-called “whales” moving large amounts of bitcoin, ripple (XRP), or ethereum. When a major coin holder sells it can trigger automatic computer controlled sell orders leading to sudden sell-offs,” said Forbes.
Is there a rally?
Is there a so-called Santa rally, which traditionally sees stocks around the world move high in the run-up to Christmas?
Amid BTC’s plummeting price bitcoin economist Dr. Saifedean Ammous tweeted on Sunday about the way he saw the market going over the next few weeks.
“It looks set for an 11% drop next week,” he said.
Don’t hold your breath for the weeks ahead. It’s anyone’s guess.