The cryptocurrency market keeps going down as bitcoin, the flagship cryptocurrency, has briefly dropped below the $7,000 mark, to $6,980 at press time. The price of most major cryptocurrencies, including Ethereum, Ripple, Bitcoin Cash, and Litecoin, has also been declining.
Bitcoin has been coming down from a mid-December all-time high of over $19,000, and quarter-to-date has already seen a decline of 48 percent. Ethereum, the second-largest cryptocurrency platform, recently dropped below $400, and is down by 47.5 percent this quarter.
The decline, according to CNBC, was expected by some analysts who saw the selloff coming as we’re nearing the mid-April deadline US citizens have to file taxes. The selloff may be occurring as investors start managing their money to pay capital gains tax.
Both bitcoin and the cryptocurrency market are now seeing levels below those reached in February, when bitcoin hit a low of little over $7,000 before bouncing back to about $11,500. The $7,000 mark proved to be a support, that seemingly didn’t hold.
While trading volumes are down across most major cryptocurrency exchanges, including Binance, Bitfinex, Huobi, Bittrex, and OKex, they’re intensifying in futures markets. To Benjamin Roberts, co-founder and CEO of Ethereum-focused startup Citizen Hex, the market slump is partly caused by the success stocks have been seeing.
“People are sitting on massive profits on almost every asset class for the last 10 years. Crypto happened to represent the culmination of that excitement and exuberance about tech.”
Are cryptocurrency markets about to recover?
While some show bearish takes on future outlooks, others point out the cryptocurrency markets may be about to boom. As covered by Core Media Bill Barhydt, chief executive officer of multi-currency wallet Abra, believes the market will boom later this year.
Brahydt has notably stated that he believes wealthy investors are watching the market develop from the sidelines, waiting for the right time to jump in. He stated:
“I talk to hedge funds, high net worth individuals, even commodity speculators. They look at the volatility in the crypto markets and they see it as a huge opportunity. Once that happens, all hell will break loose. Once the floodgates are opened, they’re opened.”
The CEO noted that regulations may even helped the market, as they’ll help institutional investors put in their money.