• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC
Bitcoinist.com
No Result
View All Result
Breaking News: Breaking: DCG And Genesis Close Initial Agreement With Creditors
3 Reasons Bitcoin is Singing the Blues
Advertisement

3 Reasons Bitcoin is Singing the Blues

Kyle Baird by Kyle Baird
5 years ago
in News, Bitcoin, Bitcoin Price, Markets and Prices, News teaser
0
Advertisement

The price of Bitcoin has been resting at around $6,000 recently — a disappointing 2018 low point. With so much talk and news coming out about cryptocurrency, many dejected investors are wondering ‘What is holding Bitcoin back?’


‘Chain Gang Blues’

Bitcoin has had many great upgrades recently, especially with the addition of the Lightning Network earlier this year.

Don't wait! Jump on this Crypto Deal and get a 150% Welcome Bonus plus 100 Free Spins on your deposit today!

This payment channel system was designed to allow person-to-person transactions, rather than busy up the main network. Lightning Network has helped to reduce fees, and, at the same time, has made possible instantaneous micro-transactions.

The amount of on-chain transactions, however, has declined. Last summer, the number of monthly transactions mostly fell within the 200-300 thousand range, with some outliers. Looking from February to the present, the number of transactions fell to 150-225 thousand per month.

Dan Rice, CTO, and co-founder of Sagewise is skeptical of blaming the drop solely on the new payment channels stating:

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
570% up to 12 BTC + 300 Free Spins for new players & 1 BTC in bonuses every day, only at Wild.io. Play Now!

A portion of that drop can be attributed to use of payment channels and transaction batching, but not all.

Perhaps the decline of the traditional global markets, as well as the exhausted and apathetic cryptocurrency market are tugging the price of Bitcoin down along with it.

‘Momma Said There’ll Be Days Like This’

Investors who jumped on the Bitcoin bandwagon at the end of 2017, or who tried buying the dip on the way down, are always the first to negatively analyze the state of the current market.

Techincal aspects of traditional markets are not completely lost on the cryptocurrency markets. Taking a more macroscopic analysis of where we were at least one year ago, compared with now, can help to better judge our positions.

The astonishing run-up in November and December was a complete anomaly. Basic physics and market analysists share the same views that “What goes up, must come down.”

It is most common that when the markets see a steep and rapid increase in price, the pullback that eventually follows normally retraces 70-100 percent or more of the original price — similar to an ‘elastic band’ effect.

If we consider between $3000 and $5000 to be the origin price of the blast off, we can consider it normal to be currently at [coin_price] — about a 70 percent retrace from its all-time high.

It is times like these, that seasoned veterans in the markets wait patiently for the best time to add to their positions at the lowest prices possible.

Burnt Offerings

Depending on who you ask, you will get differing opinions on the number of Initial Coin Offerings (ICO) in the blockchain and cryptocurrency space. Most who invested in an ICO project during the past year are in the red and are holding their coins, waiting for the next big rally.

There is no shortage of ICO coins that have no use-cases, are copies of other coins, or are flat out scams. Projects like these are constantly folding, with new ones popping back up every day.

The sheer number of coins is head-spinning. Mike Finch, co-founder of ICO Alert stated:

ICO Alert is on pace to list over 5,000 ICOs this year, up way more than the 1,848 listings last year.

For these and other reasons, Ben Marks, CEO and Founder of Blocktrade Capital, is critical of the new and mostly unregulated ICO market:

One, talking about the impending rally, unfortunately, doesn’t seem to ever spark the rally. Two, the enormous growth of ICO projects hasn’t translated to any market-wide growth, and if anything, it’s caused the market to lose value.

What do you think are other prominent reasons that Bitcoin and the cryptocurrency market is down? Let us know your thoughts in the comments below!


Images courtesy of Blockchain.com and TradingView

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.

Kyle Baird

Kyle Baird

Related Posts

Bitcoin price

This Will Be Important For Bitcoin And Crypto This Week

10 hours ago
New record: 49% of Bitcoin Supply Has Not Changed Hands in 2 Years

New Record: Half Of Bitcoin Supply Hasn’t Changed Hands In 2 Years

1 day ago
Bitcoin Derivatives Markets Volumes Show Bullish Trend After 2022 Downturn

Bitcoin Derivatives Market Volumes Show Bullish Trend After 2022 Downturn

2 days ago
Bitcoin

Sri Lanka Central Bank Says Bitcoin Cannot Solve Economic Crisis

3 days ago
tulip mania bitcoin

Celebrating The Tulip Mania Anniversary With Bitcoin & Crypto

3 days ago
Bitcoin Long-Term Holders Now Hold 78% Of Supply, Highest Level Ever

Bitcoin Long-Term Holders Now Hold 78% Of Supply, Highest Level Ever

3 days ago
Please login to join discussion

Premium Partners

Premium Casino Partners

Top Casinos

BitStarz
BitStarz
Punt Casino
Punt Casino
mBit
mBit
Metaspins
Metaspins
1xBit
1xBit
Coinplay
Coinplay
K8
K8
Vegas Casino
Vegas Casino

Sportbooks

Coinplay
Coinplay

Press Releases

  • MEMAG Presale Crosses $3 Million As Investors See Future...

    4 hours ago
  • Syscoin and SupraOracles Join Forces to Onboard the World...

    5 hours ago
  • Fantom (FTM) and GMX (GMX) Price Goes On A Free Fall, While...

    6 hours ago
  • Snowfall Protocol (SNW) Success In Presale While Crypto...

    8 hours ago
  • Threshold (T) and Chia (XCH) Make Reasonable Gains As...

    10 hours ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2023 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Industry News
    • Press Releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
    • Bitcoin Casinos – Where, What and How to Play
  • Events
  • Play Games
  • Play Casino Games
  • Win 1 BTC

© 2022 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.