Crypto market keeps dropping: time to panic?
This week almost all popular digital currencies have reached their record minimum. Similar decrease was registered several months ago. Analysts connect market drawdown with bitcoin drop. Yesterday BTC dropped below a psychological mark of $8,000 for the first time since June.
Other crypto coins were also dropping this week. According to Coinmarketcap, as of September, 27 ETH dropped in price down to $166,7 (-1,53%), XRP costs $0,2 (-2,24%).
Tether moved Bitcoin Cash from the fourth place in CoinMarketCap rating. BCH dropped 2,90% in a day, having reached the mark of $215,6.
Experts differ in their opinions regarding the prospects of the industry. Dovey Wan, Founding Partner at Primitive Ventures, is confident that the fall of the main crypto coin below $7, 500, the profitability of Anminer S9 will be doubtful. It is this equipment that is still holding up majory of the hashrate.
Jake Chervinsky, American lawyer who works with digital assets, tweeted that this massive drop of the market means SEC distrust to the industry. The expert pointed at the connection between the drop and the profit growth of offshore unregulated margin trading platforms. Chervinsky believes that the issue of the regulator to ETF on the basis of BTC can be solved, if the trading volume will be concentrated on regulated markets.
This week Hester Peirce, SEC Commissioner, said that digital money can in future become “the money of the internet”. The regulator’s representative views digital assets as “transaction mechanisms” and believes store of value is an important function of these assets.
Despite the dropping crypto market, there are still bitcoin believers. Mark Yusko, CEO of Morgan Creek Capital Management, said in his recent interview that BTC price can go up and down, but the yearly dynamic shows objective reasons for buying digital assets and not selling it. Yusko points to the fact that wallets, block size, transaction size, hashrate are growing. Yusko compared bitcoin with Amazon shares that grew in price from с $1,73 in 1997 to almost $1800 currently.
“The shares had double-digit drawdowns every single year, including this one. The average peak-to-trough: 31%, twice 90%. What was the right time to sell it? Never”, — Yusko said.
Bitcoin remains the flagman ship of the industry and sets example for other crypto coins. This is why people on social networks say that BTC drop by $2’000 is still not a reason to panic.
