The statement which the U.S. Securities and Exchange Commission (SEC) issued last week on cryptocurrency exchanges showed just how a single indication of regulations can shake up the cryptocurrency world, but it is more to do with the panic that followed the announcement, rather than actual announcement itself. In any case the community has seen that various concerns cause bitcoin value loss.
Continous concerns cause bitcoin value loss
When the news broke for the SEC’s announcement on March 7, Bitcoin had opened its trading at $10,803, according to CoinMarketCap.
In the hours that followed the news, Bitcoin dropped by more than 10 percent in value and ended up closing just a bit over it at around $9,965.
The next 3 days saw Bitcoin meeting some of its lowest values in a month, hitting a low of $8,513 on March 9, something which it had not seen since February 13.
Since March 9, Bitcoin has started to improve bit by bit, but the way that the panic sell off cycle has begun has started a murmur in the cryptocurrency community that Bitcoin’s drop in value could continue further despite these past couple of days of stabilization.
Which concerns cause bitcoin value loss?
While based on pure speculation and personal – and some technical – analysis, the rumors suggest that if the selloff continues with the trend of panicked cryptocurrency traders trying to “cut their losses” to sell their Bitcoin at whatever price it goes off for at the moment, then it would just keep dragging the value of Bitcoin further south.
A niche of group of analysts also states that this could have Bitcoin drop below a highly depressing value of $4,000 in a matter of days, before the cycle of its rise starts again akin to how it started in the last few months of 2017, and sees Bitcoin reaching never before seen values once again.
This sentiment is shared by technical analysts at the firm, Goldman Sachs, which has noted:
“The 200-dma in particular is important given that it held very well at the previous low in September. Getting a close break this time around would warn of structural damage, increasing the risk of new local lows (<5,922). At this point, need to get back through 9,322 (the Feb. 26th low) for this to stabilize.”
Other analysts mention that citing these predictions, serious traders should try “hodling” their Bitcoins at the moment rather than selling them off, since a Bitcoin sell off and significant drop in value seems inevitable anyway, and when that happens and Bitcoin bounces back to its value of $20,000 from December 2017 and above, then the ones who held on to the digital asset would find themselves in profit.
Until there is some sort of continuous certainty there will be much more concerns that cause bitcoin value losses.