Bitcoin experienced its worst monthly performance for seven years in November, sliding by 37 percent. The top-ranked cryptocurrency is also at its lowest price level since the end of September 2017.
Bitcoin Dropped Almost 38 Percent in November
On Friday, BTC fell below $4,000 again, ending trading for November at $3,900. Friday’s fall meant the top-ranked cryptocurrency fell by about 38 percent, having entered the month at $6,300.
This monthly decline is the highest since August 2011. At that time, BTC fell by almost 40 percent from $11.40 to $8.20.
For half of the November, BTC remained at circa $6,300. However, on the 14th, it dropped spectacularly to $5,500. In little time, BTC fell below both the $5,000 and $4,000 price levels. Some commentators immediately identified $3,500 and $3,000 as crucial resistance levels.
BTC did experience a couple of price bounces upon testing $3,500. As at the time of writing this article, Bitcoin is back above $4,000. Having resisted a push below the $3,500 level, the expectation among some BTC enthusiasts will be to see it cross the $4,500 psychological barrier.
Hash Wars and Massive Selloffs
Speaking to Bloomberg, billionaire Mike Novogratz of Galaxy Digital Holdings decried the prolonged bear market that has so far characterized the cryptocurrency market in 2018. According to Novogratz, the combination of the sustained bearish conditions and regulatory scrutiny has led many to lose confidence in the asset class.
This loss of confidence invariably leads to massive selloffs. Other cryptocurrencies experienced similar declines. The total cryptocurrency market capitalization also shrunk by more than $70 billion.
Some commentators also say the saga that was the Bitcoin Cash hash war was also another reason for the instability in the market. For Michael Moro, the CEO of Genesis Global Trading, the saga had spillover effects on other virtual currencies in the market.
Despite the tumultuous few weeks in November, many stakeholders remain optimistic about the prospects of Bitcoin. Recent reports indicate that Nasdaq plans to list BTC futures in the first quarter of 2019.
While Bakkt may have postponed its BTC futures to 2019, the CEO of parent company Intercontinental Exchange (ICE), Jeff Sprecher, said virtual currencies have a place in regulated markets. As always, the recent price crash allowed critics to voice their opinions as well. Paul Donovan of UBS recently said BTC was on the verge of falling apart.
What is your end of year price prediction for Bitcoin? Let us know your thoughts in the comment section below.
Image courtesy of Coinmarketcap.com and Shutterstock.
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Author: Nick Omo