BTC suddenly dropped below $10,000 within an hour today. The steep decline ended at $9,500, and it is currently trudging the $9,800 range. BitMEX witnessed massive Long liquidations of $150 million following BTC’s sharp crash, as traders put blind faith in Arthur Hayes bullish prediction ensuing the Fed’s billion-dollar pump.
Google trends forecasted a dip in BTC price
This severe blow to BTC’s price could’ve been predicted and prevented by following the depreciating interest in Bitcoin as reported by Google trends. On Google’s scale of 0-100, bitcoin currently has a score of 35, a 65% decrease since its ATH of 100 in June ’19. This surge in searches concurred with the year’s record high price of BTC – $13,000. BTC/USD was trading at $5,000 in April when its “interest over time” was identical to the current. Do the current search trends forecast an end to bearish hibernation? Research suggests the direct dependence of Bitcoin’s price on the search patterns observed.
Funding Interest in crypto and blockchain is waning
A steep decline in crypto and blockchain investments is prevalent, and incorporation of the incuriousness’ effect might’ve painted a more accurate picture of bitcoin’s price. The waning investment trends follow ICOs as well as private funding.
$12.8 billion were invested in the crypto and blockchain industry in 2018, whereas current trends forecast only a fraction of last year’s capital, as reported by CrunchBase. The funding environment was referred to as a deflated balloon instead of a popped one in the report. And the consistent bearish run after BTC’s peak price is cited as the reason responsible for the decline in investments.
The salient example of the diminishing interest in crypto and blockchain is EOS and its ICO sales. It raised a record-breaking $4 billion without a live product during its first ICO but is struggling with its 2nd ICO that aims to improve the scalability of the network. LiquidApps failed to follow in Block.One’s footsteps and have only sold tokens worth $2.8 million due to lack of investor participation.
Andreessen Horowitz, a prominent venture capital firm, has only invested $75 million this year while last year it participated in 14 funding rounds and contributed $850 million to the crypto and blockchain industry.
Are investors losing confidence in the industry, and is this going to affect the price of cryptocurrencies severely?
The Chinese government is a threat to bitcoin mining
A mining cleanup notice recently issued by Inner Mongolia Autonomous Region might be the reason behind anxious investors.
A Local cryptocurrency news outlet reported the involvement of 5 departments in this cleanup- The Public Security Department, The Development and Reform Commission, The Financial Office, The Big Data Bureau, and The Department of Industry and Information Technology. The leaders of the region defined the mining industry as a pseudo-financial innovation that did not contribute to the country’s economy and should not be supported.
The Mongolian regulators are undertaking a serious investigation against mining operations and other “legitimate” businesses like blockchain and Internet Data Centers, cloud computing hosts, etc., which are a cover for mining operations.
Community worries, in the wake of this news, are not unfounded as around 80% of the mining pools are located in China, concentrated in Inner Mongolia, Sichuan, and Xinjiang, due to cheap electricity and suitable climatic conditions. A ban on mining in these provinces will severely affect bitcoin’s blockchain and eventually its price. Tense sentiment owing to this news could’ve been one of the reasons behind the crash.
Yesterday’s altcoin gain has slumped with bitcoin, and the current market is a sea of red.
Current Bitcoin Price – $9,886.26
Yesterday, Bitcoin opened at a price of $10,247.80. The fluctuations drove it to the lowest value of $10,191.47 and the highest value of $10,275.93 in 24 hours. Bitcoin closed at $10,198.25 and saw a decrease of 0.48% throughout the day. The crypto coin is still below its all-time high value of $20,089.00 by 48.84%.
Current Ethereum Price – $209.26
Yesterday, Ethereum opened at $208.05. The fluctuations drove it to the lowest value of $208.05 and the highest value of $216.71 in 24 hours. Ethereum closed at $211.39 and saw an increase of 1.61% throughout the day.
The crypto coin is still below its all-time high value of $1,432.88 by 84.87%.
Current Ripple Price – $0.291722
Yesterday, Ripple opened at $0.284163. The fluctuations drove it to the lowest value of $0.283921 and the highest value of $0.322034 in 24 hours. Ripple closed at $0.313776 and saw an increase of 10.42% throughout the day.
The crypto coin is still below its all-time high value of $3.84 by 91.61%.
Current Litecoin Price – $74.21
Yesterday, Litecoin opened at $74.23. The fluctuations drove it to the lowest value of $74.15 and the highest value of $79.66 in 24 hours. Litecoin closed at $77.97 and saw an increase of 5.04% throughout the day.
The crypto coin is still below its all-time high value of $375.29 by 78.77%.
Current Cardano Price – $0.050930
Yesterday, Cardano opened at $0.048949. The fluctuations drove it to the lowest value of $0.048866 and the highest value of $0.054921 in 24 hours. Cardano closed at $0.053292 and saw an increase of 8.87% throughout the day.
The crypto coin is still below its all-time high value of $1.33 by 95.87%.
What do you think might’ve been the reason behind the crash to $9,000? Share your insights with us in the comments below.