Bitcoin Crash Continues: OG Crypto Slides Under $4k
After weeks of unprecedented non-volatility, bitcoin has seen a series of sharp declines in November 2018. The latest selloff brought the most popular cryptocurrency below $4,000 USD — a far cry from the $6,500 price point the crypto was maintaining just two weeks ago.
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November Bitcoin Crash: From Bad to Worse
On the year it’s been a tale of two Novembers for the bitcoin price. The top cryptocurrency by market capitalization was preparing to rip above $10,000 at this point in 2017 while one year later the crypto has slid below $4,000 for the first time in 2018.
The current sell pressure comes as bitcoin has bled nearly $3,000 in two weeks — the cryptocurrency had been hovering around $6,500 as recently as November 13th.
The coin’s market cap — currently $64 billion, down from $137 billion last November — has also bled approximately $40 billion over the last two weeks.
At press time, the bitcoin price was holding ground just above $3,700. That’s $800 off from what Bitsonline resident technical analyst Ramiro Burgos recently noted as the cryptocurrency’s “historical $4,500 support” level.
With chatter of a global recession possibly brewing, it may be a bad time for risk-on assets in general, particularly assets like bitcoin and ether in the fledgling and still relatively small cryptoeconomy.
Bitcoin Crash an Entry Point for Institutions?
Institutions try to avoid buying at the tops of market cycles. With a cryptoeconomy currently in downswing and with increased institutional movement toward cryptocurrencies in 2018, it seems as there’s a new window for firms to find more down-to-earth entry points.
“At [$4,500], institutional investors could consider re-entering the game,” Burgos posited in his latest bitcoin analysis.
It’s such investors that will be the thread to keep an eye out going forward for the cryptoeconomy, Fundstrat’s Tom Lee argued earlier in the week.
“The next wave of adoption is institutional,” Lee said.
“There is a crossover happening, this is just an awkward transition — institutional backing will come soon. You will get it partly through infrastructure, like Bakkt, which is launching soon.”
For now, though, the waiting game ensues.
What’s your take? What’s driving the current bitcoin crash? Where do you see a bottom forming, and when? Let us know in the comments section below.
Images via CoinBillboard, Pixabay