Winter is coming! That is if it isn’t here already. This year hasn’t been a very good one for cryptocurrencies and it seems the worst is yet to come. Fear in the crypto sphere is being fuelled by the recent slump of Bitcoin ($5,219, -5.6%) and other cryptocurrencies such as Ripple ($0.482, -4.87%), Litecoin ($37.63, -9.74%), and Ethereum ($153.9, -11.4%).
According to a Bloomberg report from November 16, cryptocurrencies have yet to receive another blow that will bring them crashing to their knees, which so far at least was quite foreshadowing. I wouldn’t say Bitcoin got the worst hit but the analyst polled by Bloomberg has forecasted that the mother of all cryptocurrencies, Bitcoin, is likely to fall to $1,500, a drop which is calculated to be over 70% of its current levels. Trust me, this is the last thing we want in the crypto sphere.
The report by Bloomberg showed that the cryptocurrency tumbled 12% on November 14 alone, making it fall to its lowest value since 2017, and that was before today’s slump. It was also reported that Bitcoin has lost over 60% of its value in 2018 alone. Is this the end? Or the beginning of the end? Although many crypto enthusiasts are positive that the cryptocurrency will bounce back, a larger percent are troubled that this could be the end of Bitcoin.
To fuel the already burning fear, the founder of the hedge fund Ikigai, Travis Kling, gave a public statement saying that there is a small chance that something terrible could happen to Bitcoin Cash that would be strong enough to affect the entire crypto market negatively. Although he didn’t give a value, I guess that statement speaks for itself. Just when we needed a ray of light of hope. Even a single ray would be comforting at this time. Alas, none is forthcoming.
Commenting on the crypto meltdown, some crypto investors are of the belief that the hash war going on between the two variant of Bitocoin Cash – Bitcoin SV and Bitcoin ABC – is the reason for this meltdown. The continued fight for dominance has pushed crypto investors and miners away, hence the meltdown.
The Bloomberg article also stated that the negative impact of this meltdown also spread to the US-based chipmakers, Nvidia. Nvidia Corp. reported in its sale forecasts for the current quarter that the company has experienced lingering loss of demand from the collapse of cryptocurrency mining. According to the chipmaker, there was an oversupply of parts when the crypto market crashed due to a shortage in demand from miners.
This is indeed a hard time for the crypto sphere. As we hope for the market to bounce back to its old glory, I would like to advise crypto investors to tread this part carefully. There is no assurance that Bitcoin would bounce back anytime soon neither is there any proof that it wouldn’t. So, we just have to be prepared for the worst while we hope for the best. Better safe than sorry.