Things are not going well for those looking for a bitcoin price prediction or any major cryptocurrency for that matter. Bitcoin, the largest digital currency by market value, slumped below $6,000 on Friday, pushing its year-to-date loss to the 60% area.
As of Monday at 11 am Eastern time, Bitcoin was trading at $6,641.17 with a $113 billion market cap.
Increasing regulatory scrutiny is one of the factors plaguing digital currencies this year.
“The Bank of England on Thursday warned banks and insurers that they should be wary of crypto assets because they can be highly volatile and vulnerable to fraud,” reports Reuters. “After cryptocurrency prices surged in 2017 big institutional players were predicted to step into the industry, but most have waited on the sidelines amid regulatory worries and as they weight up whether investor interest is more than a fad.”
Related: $50k Bitcoin Forecast Still in Play, Says BitMEX CEO
Concerning Bitcoin Price Action
Bitcoin has been in a tailspin since early May and some traders believe the digital currency needs to make significant gains before market participants turn bullish. By some estimates, bitcoin would need to jump 30% to legitimize any rallies from current levels. A move of 20% typically confirms a new bull market. Some traders are concerned that bitcoin needs to fall significantly from current levels just to establish a legitimate bottom.
Year-to-date, all of the major digital currencies are in the red with the average loss being a jaw-dropping 63%.
“The total market capitalization of cryptocurrencies has fallen to around $230 billion from a peak of around $800 billion in January,” according to Reuters. “Still, money continues to be plowed into the sales of new digital currencies. Sales jumped to $13.7 billion in the first five months of the year, nearly double the amount raised for the whole of 2017, according to a report released on Thursday.”
ONChain Capital’s Ran Neu Ner talked with CNBC’s Melissa Lee on Thursday about his latest bitcoin price prediction: $5,350 in the current bear market.
He said his $5,350 prediction would likely occur within the next two weeks, adding there’s only about a 16% chance of a bull market ahead in the short-term.
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